-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WFb83LlMvMZ/DABrbndlKzuNyMyMAQqLf7uOjEZkZG/yrNdieHqMB69HzuPGhXAA DLojwPLPFnCY2oach4XcmQ== 0000950130-00-006525.txt : 20001208 0000950130-00-006525.hdr.sgml : 20001208 ACCESSION NUMBER: 0000950130-00-006525 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER MULTIPLE STRATEGIES FUND CENTRAL INDEX KEY: 0000729968 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 133395850 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-03864 FILM NUMBER: 784825 BUSINESS ADDRESS: STREET 1: 6803 S TUCSUN WAY CITY: ENGLEWOOD STATE: CO ZIP: 80112 BUSINESS PHONE: 2123230234 MAIL ADDRESS: STREET 1: 2 WORLD TRADE CENTER 34TH FLOOR STREET 2: 2 WORLD TRADE CENTER 34TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10048 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER ASSET ALLOCATION FUND DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER RETIREMENT FUND DATE OF NAME CHANGE: 19870503 FORMER COMPANY: FORMER CONFORMED NAME: OMC GROWTH & INCOME TRUST DATE OF NAME CHANGE: 19840826 N-30D 1 0001.txt N-30D [GRAPHIC] Annual Report September 30, 2000 Oppenheimer Multiple Strategies Fund [LOGO] Oppenheimer Funds(R) The Right Way to Invest - -------------------------------------------------------------------------------- REPORT HIGHLIGHTS - -------------------------------------------------------------------------------- CONTENTS 1 President's Letter 3 An Interview with Your Fund's Managers 7 Fund Performance 12 Financial Statements 41 Independent Auditors' Report 42 Federal Income Tax Information 43 Officers and Trustees The Fund has enjoyed attractive returns from a variety of investment styles, market sectors and asset classes so far in 2000. We continue to regard the technology industry group as one of the most exciting areas of the market. Using our research-driven approach to stock selection, we have continued to find reasonably valued, fundamentally strong companies throughout the stock market. - ---------------------------- Average Annual Total Returns* For the 1-Year Period Ended 9/30/00 Class A Without With Sales Chg. Sales Chg. - ---------------------------- 13.31% 6.80% Class B Without With Sales Chg. Sales Chg. - ---------------------------- 12.30% 7.30% Class C Without With Sales Chg. Sales Chg. - ---------------------------- 12.35% 11.35% - ---------------------------- *See page 10 for further details. - -------------------------------------------------------------------------------- PRESIDENT'S LETTER - -------------------------------------------------------------------------------- Dear Shareholder, [PHOTO] Bridget A. Macaskil President Oppenheimer Multiple Strategies Fund Over the past several decades, our investment teams have learned the importance of avoiding complacency when it comes to navigating the financial markets--especially when times are good. Right now, times appear particularly good. The U.S. economy is in its tenth year of expansion. In the bond market, U.S. Treasury issues have been performing favorably over the past year. In addition, despite volatility in the second quarter, the stock market has been providing attractive returns from a wide spectrum of industry sectors, capitalization ranges and investment styles. We have arrived at this juncture after months of monitoring the rapid pace of global economic growth and its implications for inflation, as well as the Federal Reserve Board's evolving monetary policy. At this point, economic indicators suggest a dampening of short-term inflationary pressures. While recent increases in oil prices are certainly taking their toll, we don't believe this signals a return to 1970's-style inflation. Accordingly, if the Fed continues in its diligence, the economy could maintain its healthy rate of growth. In the bond market, the achievement of a federal budget surplus has prompted the Treasury to buy back many of its long-term securities. The resulting supply shortage boosted these securities' returns, causing an inversion of the yield curve--an unusual situation in which shorter term Treasuries yield more than their longer term counterparts. Other bond sectors are offering many opportunities in the form of attractive valuations. Perhaps most important is that we have begun to see encouraging signs in the stock market. Formerly high-flying Internet stocks have generally come down to earth, and investors have begun to refocus on companies with strong business fundamentals and justifiable valuations. Investors have also returned to long-neglected, value-oriented companies. 1 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- PRESIDENT'S LETTER - -------------------------------------------------------------------------------- What else do these various trends tell us? They tell us that the ability to discriminate between long-term potential and short-lived fads has become more critical than ever. Trying to generate good long-term performance requires tracking the best companies through intensive research, combined with hard-earned experience. At OppenheimerFunds, our seasoned portfolio management teams fight complacency by remaining constantly aware of the risks that face the economy and financial markets. Virtually anything could affect the overall markets--a surge in inflation, a decline in productivity, deteriorating corporate earnings, or even the new Administration's proposals regarding tax reform, health-care and Social Security. However, by remaining vigilant in our quest for fundamentally sound businesses, we believe we can find good investments that can weather market volatility. In this environment, we encourage you to consult your financial advisor and to stay on track with your long-term financial plan. For our part, we will continue to monitor the opportunities and risks ever present in the financial markets. Thank you for your confidence in OppenheimerFunds, The Right Way to Invest. Sincerely, /s/ Bridget A. Macaskill Bridget A. Macaskill October 20, 2000 [GRAPHIC] These general market views represent opinions of OppenheimerFunds, Inc. and are not intended to predict or depict performance of the securities markets or any particular fund. Specific discussion, as it applies to your Fund, is contained in the pages that follow. Stocks and bonds have different types of investment risks; stocks are subject to market volatility and bonds are subject to credit and interest rate risks. 2 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- AN INTERVIEW WITH YOUR FUND'S MANAGERS - -------------------------------------------------------------------------------- [PHOTO] Portfolio Management Team (l to r) George Evans Michael Levine David Negri Richard Rubinstein Q How did Oppenheimer Multiple Strategies Fund perform over the one-year period that ended September 30, 2000? A. We are pleased with the Fund's performance. The Fund is broadly diversified, incorporating several investment styles and asset classes--and different sector performances often offset each other. Yet most sectors performed well in the second half as the stock market's advance began to broaden away from a narrow list of technology stocks. Our fixed-income investments provided attractive returns as well, despite rising interest rates. How, in your opinion, did market events contribute to this more broad-based performance? During the first half of the reporting period, many investors achieved short-term success by investing in stocks with plenty of forward price momentum--versus fundamentals and valuations. The Fund's technology holdings participated in this trend, producing attractive returns during the period. Over the second half of the fiscal year, the Fund benefited from a return to fundamentals among equity investors. At this point, momentum investing fell out of favor. Investors turned instead to companies with strong business fundamentals, which they found in a number of different areas of the market. Because we have always focused on business fundamentals when making investments, the Fund benefited from the market's shift to a more rational investment perspective. We were rewarded for our patience in several areas that had long been out of favor among investors. For example, when we first established positions in real estate investment trusts (REITs) several years ago, we did so because of rising real estate values and attractive dividend yields. However, it evidently took some time before other investors discovered these positive attributes, 3 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- AN INTERVIEW WITH YOUR FUND'S MANAGERS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- "During the past year we received attractive returns from most of the investment styles and asset classes in which the Fund invests." - -------------------------------------------------------------------------------- because REITs generally languished until 2000. Subsequently, however, REITs have provided some of the highest returns of any industry group, contributing to the Fund's performance over the reporting period. How was the Fund affected by the sharp correction in technology stocks in March and April, 2000? Although some of our holdings declined with the rest of the technology group, we fared better than the sector as a whole. Again, that's because of our focus on business fundamentals. We emphasized companies with good current earnings and avoided the more speculative "dot-com" stocks. Indeed, in spite of the correction, we continue to regard technology as one of the most exciting areas of the marketplace. Accordingly, as of September 30, technology stocks comprised approximately 12% of the Fund's net assets. The core of our technology holdings currently includes industry leaders such as International Business Machines Corp. (IBM) and Intel Corp. We have complemented these core holdings with shorter-term positions in opportunistic investments, such as semiconductors and semiconductor equipment manufacturers. After the April correction, we also established very modest positions in former technology highfliers that we believe will prosper through market-niche dominance. Which other areas of the stock market contributed positively to performance? Value-oriented energy services stocks rallied strongly in the wake of rising crude oil prices and a resumption of exploration activity among major oil producers. Financial stocks--including banks and insurance companies--began to move higher when signs of an economic slowdown hinted that interest rates might be near their peak. 4 OPPENHEIMER MULTIPLE STRATEGIES FUND - ----------------------------- Average Annual Total Returns/1/ For the Periods Ended 9/30/00 Class A 1-Year 5-Year 10-Year - ----------------------------- 6.80% 11.04% 11.39% Class B Since 1-Year 5-Year Inception - ----------------------------- 7.30% 11.11% 11.56% Class C Since 1-Year 5-Year Inception - ----------------------------- 11.35% 11.42% 11.02% - ----------------------------- Did any areas of the stock market provide disappointing returns? Yes. As a group, international stocks continued to lag their U.S. counterparts over the past year. Non-U.S. companies have been particularly hurt by a strong U.S. dollar, which has eroded their value for U.S. investors. Therefore, during the year we reduced the Fund's exposure to international stocks. How did the Fund's fixed-income investments fare? Our bond portfolio, which represented 38.7% of assets as of September 30, provided attractive returns over the fiscal year. That's primarily because we emphasized U.S. government securities, which generally performed well, and avoided corporate bonds, which lagged. Our investments in long-term U.S. Treasury securities and zero-coupon bonds did particularly well. Prompted by a national budget surplus, the U.S. Treasury began buying back existing long-term securities. The resulting decrease in supply effectively pushed up the demand for--and prices of--these securities. Although rising interest rates usually tend to erode bond prices, our long-term Treasury holdings in fact performed well during the period. Emerging market Brady Bonds also performed well as Latin American economies improved. Where are you currently finding attractive opportunities? We continue to find good values among fundamentally strong companies throughout the stock market. Recently, we have increased our exposure to companies in basic industries--such as chemical and paper companies--that we believe are inexpensively valued and dominant in their markets. And, in the financial arena, we continue to like insurance companies such as ACE Ltd., which we expect to benefit from lower interest rates if the economy continues to slow moderately. The marketplace has become highly rotational so we are emphasizing quality companies in various out-of-favor industries. 1. See notes on page 10 for further details. 5 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- AN INTERVIEW WITH YOUR FUND'S MANAGERS - -------------------------------------------------------------------------------- - ------------------------ Portfolio Allocation/2/ [PIE CHART] Stocks 55.8% Bonds 38.7 Cash Equivalents 5.5 - ------------------------ Regardless of where we continue to find opportunities over the near term, however, we want to once again stress that we are long-term investors. In our portfolios we have been rewarded for our patience, and we urge our shareholders to also have the patience that is sometimes required to profit in the financial markets. After all, having a long-term perspective is an important part of what makes OppenheimerFunds The Right Way to Invest. Top Ten Common Stock Holdings/3/ - ---------------------------------------------------------------- International Business Machines Corp. 2.4% - ---------------------------------------------------------------- Intel Corp. 1.8 - ---------------------------------------------------------------- Bank of America Corp. 1.5 - ---------------------------------------------------------------- Chase Manhattan Corp. 1.4 - ---------------------------------------------------------------- Viacom, Inc., Cl. B 1.3 - ---------------------------------------------------------------- Analog Devices, Inc. 1.2 - ---------------------------------------------------------------- ACE Ltd. 0.8 - ---------------------------------------------------------------- International Game Technology 0.8 - ---------------------------------------------------------------- Acuson Corp. 0.8 - ---------------------------------------------------------------- SBC Communications, Inc. 0.7 Top Five Common Stock Industries/3/ - ---------------------------------------------------------------- Electronics 6.2% - ---------------------------------------------------------------- Banks 4.8 - ---------------------------------------------------------------- Healthcare/Drugs 4.1 - ---------------------------------------------------------------- Computer Hardware 3.1 - ---------------------------------------------------------------- Leisure & Entertainment 2.7 2. Portfolio is subject to change. Percentages are as of September 30, 2000, and are based on total market value of investments. 3. Portfolio is subject to change. Percentages are as of September 30, 2000, and are based on net assets. 6 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- FUND PERFORMANCE - -------------------------------------------------------------------------------- How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc. of the Fund's performance during its fiscal year ended September 30, 2000, followed by a graphical comparison of the Fund's performance to an appropriate broad-based market index and a sector index. Management's discussion of performance. During the fiscal year that ended September 30, 2000, Oppenheimer Multiple Strategies Fund's performance benefited from positive market conditions, including a market-wide shift from the momentum style of investing to an emphasis on business fundamentals. In this more rational investment environment, the Fund received attractive returns from a broad array of investment styles (including growth and value), industry groups (including technology, energy and financials), market capitalizations (including mid- and small-capitalization stocks) and asset classes (stocks and bonds). The Fund's portfolio holdings, allocations and investment style are subject to change. Comparing the Fund's performance to the market. The graphs that follow show the performance of a hypothetical $10,000 investment in Class A, Class B and Class C shares of the Fund held until September 30, 2000. In the case of Class A shares, performance is measured over a ten-year period. In the case of Class B shares, performance is measured from inception of the Class on August 29, 1995. In the case of Class C shares, performance is measured from inception of the Class on December 1, 1993. The Fund's performance reflects the deduction of the 5.75% maximum initial sales charge on Class A shares, the 5% (1-year), 2% (5-year) and 1% (since inception) applicable contingent deferred sales charge for Class B, and the 1% (1-year) contingent deferred sales charge for Class C shares. The graphs assume that all dividends and capital gains distributions were reinvested in additional shares. Because the Fund invests in a variety of equity and fixed-income securities, the Fund's performance is compared to the performance of two indices: (i) the Standard & Poor's (S&P) 500 Index, a broad-based index of equity securities widely regarded as a general measure of the performance of the U.S. equity securities market; and (ii) the Lehman Brothers Aggregate Bond Index, an unmanaged index of U.S. Government Treasury and agency issues, investment-grade corporate bond issues and fixed-rate mortgage-backed securities. That index is widely regarded as a measure of the performance of the domestic debt securities market. Index performance reflects the reinvestment of dividends but does not consider the effect of capital gains or transaction costs, and none of the data in the graphs that follow shows the effect of taxes. The Fund's performance reflects the effects of Fund business and operating expenses. While index comparisons may be useful to provide a benchmark for the Fund's performance, it must be noted that the Fund's investments are not limited to the securities or countries in the indices. 7 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- FUND PERFORMANCE - -------------------------------------------------------------------------------- Class A Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: [LINE GRAPH]
Oppenheimer Multiple Lehman Brothers Aggregate Strategies Fund (Class A) S&P 500 Bond Index 12/31/90 $ 9,425 $10,000 $10,000 3/31/91 9,833 11,450 10,279 6/30/91 9,832 11,423 10,447 9/30/91 10,240 12,032 11,040 12/31/91 10,807 13,040 11,600 3/31/92 10,807 12,711 11,452 6/30/92 10,993 12,952 11,914 9/30/92 11,228 13,361 12,426 12/31/92 11,622 14,032 12,459 3/31/93 12,172 14,644 12,974 6/30/93 12,515 14,715 13,318 9/30/93 13,034 15,094 13,666 12/31/93 13,516 15,443 13,674 3/31/94 13,086 14,859 13,282 6/30/94 12,962 14,921 13,145 9/30/94 13,550 15,649 13,225 12/31/94 13,302 15,646 13,275 3/31/95 14,191 17,168 13,944 6/30/95 15,109 18,804 14,794 9/30/95 15,977 20,298 15,084 12/31/95 16,333 21,519 15,727 3/31/96 16,995 22,674 15,448 6/30/96 17,487 23,690 15,536 9/30/96 18,165 24,422 15,824 12/31/96 19,146 26,456 16,298 3/31/97 19,280 27,167 16,207 6/30/97 21,026 31,905 16,802 9/30/97 22,791 34,295 17,361 12/31/97 22,548 35,280 17,872 3/31/98 24,175 40,197 18,150 6/30/98 24,234 41,532 18,574 9/30/98 21,717 37,410 19,359 12/31/98 24,138 45,369 19,424 3/31/99 24,436 47,629 19,328 6/30/99 26,263 50,980 19,158 9/30/99 25,255 47,805 19,288 12/31/99 26,697 54,912 19,265 3/31/2000 28,217 56,169 19,690 6/30/2000 28,415 54,678 20,033 9/30/2000 $28,616 $54,147 $20,636
Average Annual Total Return of Class A Shares of the Fund at 9/30/00 /2/ 1-Year 6.80% 5-Year 11.04% 10-Year 11.39% Class B Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: [LINE GRAPH]
Oppenheimer Multiple Lehman Brothers Aggregate Strategies Fund (Class B) S&P 500 Bond Index 8/29/95 $10,000 $10,000 $10,000 9/30/95 10,241 10,422 10,097 12/31/95 10,444 11,049 10,528 3/31/96 10,825 11,642 10,341 6/30/96 11,113 12,163 10,400 9/30/96 11,526 12,540 10,592 12/31/96 12,121 13,584 10,910 3/31/97 12,176 13,949 10,849 6/30/97 13,246 16,382 11,247 9/30/97 14,332 17,609 11,621 12/31/97 14,143 18,114 11,963 3/31/98 15,144 20,639 12,149 6/30/98 15,140 21,324 12,433 9/30/98 13,544 19,208 12,959 12/31/98 15,020 23,295 13,002 3/31/99 15,176 24,455 12,938 6/30/99 16,275 26,175 12,824 9/30/99 15,623 24,545 12,911 12/31/99 16,482 28,194 12,895 3/31/2000 17,379 28,840 13,180 6/30/2000 17,468 28,074 13,409 9/30/2000 $17,445 $27,802 $13,814
Average Annual Total Return of Class B Shares of the Fund at 9/30/00 /2/ 1-Year 7.30% 5-Year 11.11% Life 11.56% 1.The Fund's fiscal year changed from 12/31 to 9/30. 2.See page 10 for further details. 8 OPPENHEIMER MULTIPLE STRATEGIES FUND Class C Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: [LINE GRAPH]
Oppenheimer Multiple Lehman Brothers Aggregate Strategies Fund (Class C) S&P 500 Bond Index 12/1/93 $10,000 $10,000 $10,000 12/31/93 10,219 10,121 10,054 3/31/94 9,865 9,738 9,766 6/30/94 9,746 9,778 9,665 9/30/94 10,171 10,256 9,724 12/31/94 9,963 10,254 9,761 3/31/95 10,604 11,251 10,253 6/30/95 11,261 12,324 10,878 9/30/95 11,892 13,302 11,092 12/31/95 12,124 14,103 11,564 3/31/96 12,591 14,859 11,359 6/30/96 12,925 15,525 11,424 9/30/96 13,403 16,005 11,635 12/31/96 14,101 17,338 11,984 3/31/97 14,164 17,804 11,917 6/30/97 15,415 20,910 12,355 9/30/97 16,676 22,476 12,765 12/31/97 16,468 23,121 13,141 3/31/98 17,619 26,344 13,345 6/30/98 17,625 27,218 13,657 9/30/98 15,771 24,517 14,235 12/31/98 17,481 29,733 14,283 3/31/99 17,662 31,214 14,212 6/30/99 18,951 33,410 14,087 9/30/99 18,180 31,329 14,183 12/31/99 19,176 35,987 14,165 3/31/2000 20,231 36,811 14,478 6/30/2000 20,320 35,833 14,730 9/30/2000 $20,424 $35,486 $15,174
Average Annual Total Return of Class C Shares of the Fund at 9/30/00/2/ 1-Year 11.35% 5-Year 11.42% Life 11.02% The performance information for both indices in the graphs begins on 12/31/90 for Class A, 8/31/95 for Class B and 11/30/93 for Class C. Past performance is not predictive of future performance. Graphs are not drawn to the same scale. 9 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- NOTES - -------------------------------------------------------------------------------- Foreign investing offers special opportunities, but also has special risks, such as the effect of currency rate fluctuations and foreign taxes. In reviewing performance and rankings, please remember that past performance does not guarantee future results. Investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Because of ongoing market volatility, the Fund's performance may be subject to substantial short-term changes and current returns may be less than the results shown as of 9/30/00. For quarterly updates on the Fund's performance, please contact your financial advisor, call us at 1.800.525.7048 or visit our website, www.oppenheimerfunds.com. Total returns and the ending account values in the graphs include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund's total returns shown do not show the effects of income taxes on an individual's investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares. Class A shares were first publicly offered on 4/24/87. Unless otherwise noted, Class A returns include the current maximum initial sales charge of 5.75%. The Fund's maximum sales charge for Class A shares was lower prior to 4/1/91, so actual performance may have been higher. Class B shares of the Fund were first publicly offered on 8/29/95. Unless otherwise noted, Class B returns include the applicable contingent deferred sales charge of 5% (1-year), 2% (5-year) and 1% (since inception). Class B shares are subject to an annual 0.75% asset-based sales charge. Class C shares of the Fund were first publicly offered on 12/1/93. Unless otherwise noted, Class C returns include the contingent deferred sales charge of 1% for the 1-year period. Class C shares are subject to an annual 0.75% asset-based sales charge. An explanation of the calculation of performance is in the Fund's Statement of Additional Information. 10 OPPENHEIMER MULTIPLE STRATEGIES FUND Financials [GRAPHIC] 11 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS September 30, 2000 - -------------------------------------------------------------------------------- Market Value Shares See Note 1 ================================================================================ Common Stocks--54.3% - -------------------------------------------------------------------------------- Basic Materials--2.3% - -------------------------------------------------------------------------------- Chemicals--1.6% Bayer AG, Sponsored ADR 72,000 $ 2,662,099 - -------------------------------------------------------------------------------- Dow Chemical Co. 54,000 1,346,625 - -------------------------------------------------------------------------------- Engelhard Corp. 173,000 2,811,250 - -------------------------------------------------------------------------------- Goodrich (B.F.) Co./1/ 87,000 3,409,312 - -------------------------------------------------------------------------------- Hercules, Inc. 95,000 1,341,875 ----------- 11,571,161 - -------------------------------------------------------------------------------- Metals--0.1% - -------------------------------------------------------------------------------- Aluminum--0.1% Alcoa, Inc. 40,500 1,025,156 - -------------------------------------------------------------------------------- Paper--0.6% Sonoco Products Co. 110,000 1,986,875 - -------------------------------------------------------------------------------- UPM-Kymmene Oyj 45,000 1,150,471 - -------------------------------------------------------------------------------- Weyerhaeuser Co. 40,000 1,615,000 ----------- 4,752,346 - -------------------------------------------------------------------------------- Capital Goods--2.6% - -------------------------------------------------------------------------------- Industrial Services--0.9% National Data Corp. 67,200 2,205,000 - -------------------------------------------------------------------------------- Pittston Brink's Group 219,000 3,394,500 - -------------------------------------------------------------------------------- Service Corp. International 345,000 840,937 ----------- 6,440,437 - -------------------------------------------------------------------------------- Manufacturing--1.7% Coherent, Inc.1,2 61,000 4,148,000 - -------------------------------------------------------------------------------- Equitable Bag, Inc./2/,/3/ 1,861 1,861 - -------------------------------------------------------------------------------- Pall Corp. 165,000 3,289,687 - -------------------------------------------------------------------------------- Swift Transportation Co., Inc./2/ 80,900 1,056,756 - -------------------------------------------------------------------------------- Trinity Industries, Inc. 58,000 1,355,750 - -------------------------------------------------------------------------------- Tyco International Ltd. 47,500 2,464,062 ----------- 12,316,116 - -------------------------------------------------------------------------------- Communication Services--2.7% - -------------------------------------------------------------------------------- Telecommunications: Long Distance--1.3% Brocade Communications Systems, Inc./1/,/2/ 2,750 649,000 - -------------------------------------------------------------------------------- ECI Telecommunications Ltd. 30,400 931,000 - -------------------------------------------------------------------------------- Intermedia Communications, Inc./2/ 393 11,593 - -------------------------------------------------------------------------------- NTL, Inc./2/ 49,000 2,269,312 - -------------------------------------------------------------------------------- Verizon Communications 71,000 3,439,062 - -------------------------------------------------------------------------------- WorldCom, Inc./2/ 81,000 2,460,375 ----------- 9,760,342 12 OPPENHEIMER MULTIPLE STRATEGIES FUND
Market Value Shares See Note 1 - -------------------------------------------------------------------------------------------------------- Telephone Utilities--0.8% SBC Communications, Inc. 105,000 $ 5,250,000 - -------------------------------------------------------------------------------------------------------- Tele Norte Leste Participacoes SA (Telemar) 26,283,402 460,138 - -------------------------------------------------------------------------------------------------------- Tele Norte Leste Participacoes SA (Telemar), Preference 3,077,499 69,890 - -------------------------------------------------------------------------------------------------------- Telefonica SA, BDR/2/ 15,026 297,262 ----------- 6,077,290 Telecommunications: Wireless--0.6% AT&T Wireless Group/2/ 50,000 1,043,750 - -------------------------------------------------------------------------------------------------------- Millicom International Cellular SA/2/ 75,600 2,688,525 - -------------------------------------------------------------------------------------------------------- Telesp Celular Participacoes SA 49,153,261 402,284 ----------- 4,134,559 - -------------------------------------------------------------------------------------------------------- Consumer Cyclicals--7.3% - -------------------------------------------------------------------------------------------------------- Autos & Housing--1.5% Borg-Warner Automotive, Inc. 64,000 2,120,000 - -------------------------------------------------------------------------------------------------------- General Motors Corp., Cl. H/2/ 100,000 3,718,000 - -------------------------------------------------------------------------------------------------------- IRSA Inversiones y Representaciones SA 598,233 1,376,762 - -------------------------------------------------------------------------------------------------------- Owens Corning 402,000 1,055,250 - -------------------------------------------------------------------------------------------------------- Southdown, Inc. 40,300 2,871,375 - -------------------------------------------------------------------------------------------------------- Toll Brothers, Inc./1/,/2/ 5,200 178,750 ----------- 11,320,137 - -------------------------------------------------------------------------------------------------------- Leisure & Entertainment--2.7% Berjaya Sports Toto Berhad 190,000 247,000 - -------------------------------------------------------------------------------------------------------- Brunswick Corp. 88,000 1,606,000 - -------------------------------------------------------------------------------------------------------- Callaway Golf Co./1/ 225,000 3,459,375 - -------------------------------------------------------------------------------------------------------- Carnival Corp. 90,000 2,216,250 - -------------------------------------------------------------------------------------------------------- Host Marriott Corp. 112,500 1,265,625 - -------------------------------------------------------------------------------------------------------- International Game Technology/1/,/2/ 172,100 5,786,862 - -------------------------------------------------------------------------------------------------------- Mattel, Inc. 237,000 2,651,437 - -------------------------------------------------------------------------------------------------------- Shimano, Inc. 165,000 3,183,648 ----------- 20,416,197 - -------------------------------------------------------------------------------------------------------- Media--1.3% Donnelley (R.R.) & Sons Co. 92,000 2,259,750 - -------------------------------------------------------------------------------------------------------- Reed International plc 225,000 1,786,398 - -------------------------------------------------------------------------------------------------------- South China Morning Post Holdings Ltd. 2,356,000 1,797,920 - -------------------------------------------------------------------------------------------------------- Time Warner, Inc. 46,000 3,599,500 ----------- 9,443,568 - -------------------------------------------------------------------------------------------------------- Retail: General--0.3% Federated Department Stores, Inc./2/ 85,000 2,220,625
13 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------- Retail: Specialty--1.0% Borders Group, Inc./2/ 155,000 $ 2,160,312 ---------------------------------------------------------------------------------------------------------- Gap, Inc. 132,000 2,656,500 ---------------------------------------------------------------------------------------------------------- Pacific Sunware of California, Inc./2/ 130,000 2,437,500 ---------------- 7,254,312 Textile/Apparel & Home Furnishings--0.5% ---------------------------------------------------------------------------------------------------------- Jones Apparel Group, Inc./1/,/2/ 130,000 3,445,000 Consumer Staples--4.5% ---------------------------------------------------------------------------------------------------------- Broadcasting--1.4% ---------------------------------------------------------------------------------------------------------- Clear Channel Communications, Inc./1/,/2/ 50,000 2,825,000 ---------------------------------------------------------------------------------------------------------- Cox Radio, Inc., Cl. A/2 114,300 1,993,106 ---------------------------------------------------------------------------------------------------------- Emmis Communications Corp., Cl. A/2/ 73,200 1,811,700 ---------------------------------------------------------------------------------------------------------- Infinity Broadcasting Corp., Cl. A/2/ 82,500 2,722,500 ---------------------------------------------------------------------------------------------------------- Societe Europeenne des Satellites 8,600 1,305,394 ---------------- 10,657,700 ---------------------------------------------------------------------------------------------------------- Entertainment--2.1% News Corp. Ltd. (The), Sponsored ADR, Preference 47,000 2,203,125 ---------------------------------------------------------------------------------------------------------- Nintendo Co. Ltd. 22,700 4,144,651 ---------------------------------------------------------------------------------------------------------- Viacom, Inc., Cl. B/1/,/2/ 164,920 9,647,820 ---------------- 15,995,596 ---------------------------------------------------------------------------------------------------------- Household Goods--0.4% Wella AG 93,210 2,796,766 ---------------------------------------------------------------------------------------------------------- Wella AG, Preference, Non-Vtg. 9,100 323,238 ---------------- 3,120,004 ---------------------------------------------------------------------------------------------------------- Tobacco--0.6% ---------------------------------------------------------------------------------------------------------- Philip Morris Cos., Inc. 147,500 4,342,031 ---------------------------------------------------------------------------------------------------------- Energy--5.3% Energy Services--2.2% Cooper Cameron Corp./1/,/2/ 22,500 1,657,969 ---------------------------------------------------------------------------------------------------------- Core Laboratories NV/2/ 90,000 2,210,625 ---------------------------------------------------------------------------------------------------------- Input/Output, Inc./1/,/2/ 238,000 2,290,750 ---------------------------------------------------------------------------------------------------------- Petroleum Geo-Services ASA, Sponsored ADR2 100,000 1,725,000 ---------------------------------------------------------------------------------------------------------- Santa Fe International Corp./1/ 105,000 4,731,562 Southern Energy, Inc./2/ 17,500 549,062 ---------------------------------------------------------------------------------------------------------- Transocean Sedco Forex, Inc./1/ 58,000 3,400,250 16,565,218 ---------------- Oil: Domestic--1.6% ---------------------------------------------------------------------------------------------------------- Devon Energy Corp. 59,422 3,574,233 ---------------------------------------------------------------------------------------------------------- Exxon Mobil Corp. 34,501 3,074,902
14 OPPENHEIMER MULTIPLE STRATEGIES FUND Market Value Shares See Note 1 - -------------------------------------------------------------------------------- Oil: Domestic Continued Kerr-McGee Corp. 20,000 $ 1,325,000 - -------------------------------------------------------------------------------- Unocal Corp. 105,000 3,720,937 ------------------ 11,695,072 - -------------------------------------------------------------------------------- Oil: International--1.5% Anderson Exploration Ltd./2/ 105,600 2,309,079 - -------------------------------------------------------------------------------- Berkley Petroleum Corp./2/ 208,900 1,187,090 - -------------------------------------------------------------------------------- Petroleo Brasileiro SA, Preference 33,300 952,976 - -------------------------------------------------------------------------------- Talisman Energy, Inc./2/ 121,090 4,245,313 - -------------------------------------------------------------------------------- Total Fina Elf SA, Sponsored ADR 33,000 2,423,437 ------------------ 11,117,895 - -------------------------------------------------------------------------------- Financial--11.0% - -------------------------------------------------------------------------------- Banks--4.8% ABN Amro Holding NV 77,000 1,793,946 - -------------------------------------------------------------------------------- Banco Frances del Rio de la Plata SA 150,000 1,040,124 - -------------------------------------------------------------------------------- Bank of America Corp. 213,000 11,155,875 - -------------------------------------------------------------------------------- Chase Manhattan Corp./1/ 230,000 10,623,125 - -------------------------------------------------------------------------------- Knight Trading Group, Inc./1/,/2/ 53,600 1,929,600 - -------------------------------------------------------------------------------- Societe Generale, Cl. A 78,000 4,360,697 - -------------------------------------------------------------------------------- UBS AG 11,200 1,490,396 - -------------------------------------------------------------------------------- UniCredito Italiano SpA 620,000 3,233,657 ------------------ 35,627,420 - -------------------------------------------------------------------------------- Diversified Financial--1.2% C.I.T. Group, Inc., Cl. A 126,000 2,205,000 - -------------------------------------------------------------------------------- Equifax, Inc. 76,600 2,063,412 - -------------------------------------------------------------------------------- Freddie Mac 43,800 2,367,937 - -------------------------------------------------------------------------------- Morgan Stanley Dean Witter & Co. 29,000 2,651,687 ------------------ 9,288,036 - -------------------------------------------------------------------------------- Insurance--2.1% ACE Ltd./1/ 158,000 6,201,500 - -------------------------------------------------------------------------------- Aetna, Inc./1/ 27,500 1,596,719 - -------------------------------------------------------------------------------- Aon Corp. 50,000 1,962,500 - -------------------------------------------------------------------------------- Skandia Forsakrings AB 100,000 1,982,768 - -------------------------------------------------------------------------------- XL Capital Ltd., Cl. A 49,700 3,652,950 ------------------ 15,396,437 - -------------------------------------------------------------------------------- Real Estate Investment Trusts--2.5% Archstone Communities Trust 95,000 2,333,438 - -------------------------------------------------------------------------------- Avalonbay Communities, Inc. 60,000 2,861,250 - -------------------------------------------------------------------------------- Brandywine Realty Trust 105,000 2,126,250 - -------------------------------------------------------------------------------- Camden Property Trust 65,000 2,015,000 15 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Market Value Shares See Note 1 - ------------------------------------------------------------------------------------- Real Estate Investment Trusts Continued CarrAmerica Realty Corp. 75,000 $ 2,268,750 - ------------------------------------------------------------------------------------- Chelsea GCA Realty, Inc. 65,000 2,283,125 - ------------------------------------------------------------------------------------- Developers Diversified Realty Corp. 100,000 1,287,500 - ------------------------------------------------------------------------------------- Equity Office Properties Trust 43,441 1,349,386 - ------------------------------------------------------------------------------------- Post Properties, Inc. 50,000 2,178,125 ---------------- 18,702,824 - ------------------------------------------------------------------------------------- Savings & Loans--0.4% Washington Mutual, Inc. 70,000 2,786,875 - ------------------------------------------------------------------------------------- Healthcare--5.5% - ------------------------------------------------------------------------------------- Healthcare/Drugs--4.1% Abbott Laboratories/1/ 54,000 2,568,375 - ------------------------------------------------------------------------------------- Alkermes, Inc./2/ 25,000 965,625 - ------------------------------------------------------------------------------------- American Home Products Corp./1/ 64,000 3,620,000 - ------------------------------------------------------------------------------------- AstraZeneca Group plc 61,300 3,213,589 - ------------------------------------------------------------------------------------- Human Genome Sciences, Inc. /1/,/2/ 10,500 1,817,813 - ------------------------------------------------------------------------------------- Johnson & Johnson/1/ 44,730 4,201,824 - ------------------------------------------------------------------------------------- Merck & Co., Inc./1/ 40,000 2,977,500 - ------------------------------------------------------------------------------------- Mylan Laboratories, Inc. 90,000 2,424,375 - ------------------------------------------------------------------------------------- Novartis AG 2,500 3,833,025 - ------------------------------------------------------------------------------------- Pliva d.d., Sponsored GDR4 20,000 215,500 - ------------------------------------------------------------------------------------- SmithKline Beecham plc, Cl. A, Sponsored ADR 37,000 2,539,125 - ------------------------------------------------------------------------------------- UnitedHealth Group, Inc./1/ 20,500 2,024,375 ---------------- 30,401,126 - ------------------------------------------------------------------------------------- Healthcare/Supplies & Services--1.4% Acuson Corp./2/ 250,000 5,687,500 - ------------------------------------------------------------------------------------- Affymetrix, Inc./1/,/2/ 4,800 239,400 - ------------------------------------------------------------------------------------- Covance, Inc./2/ 145,000 1,187,188 - ------------------------------------------------------------------------------------- Quintiles Transnational Corp./2/ 72,500 1,155,469 - ------------------------------------------------------------------------------------- St. Jude Medical, Inc./1/,/2/ 38,000 1,938,000 ---------------- 10,207,557 - ------------------------------------------------------------------------------------- Technology--11.9% - ------------------------------------------------------------------------------------- Computer Hardware--3.1% - ------------------------------------------------------------------------------------- Canon, Inc. 77,000 3,413,196 - ------------------------------------------------------------------------------------- Compaq Computer Corp. 48,000 1,323,840 - ------------------------------------------------------------------------------------- International Business Machines Corp. 162,000 18,225,000 22,962,036 ---------------- - ------------------------------------------------------------------------------------- Computer Software--1.5% Computer Associates International, Inc./1/ 73,000 1,838,688 - ------------------------------------------------------------------------------------- i2 Technologies, Inc./1/,/2/ 4,500 841,781
16 OPPENHEIMER MULTIPLE STRATEGIES FUND
Market Value Shares See Note 1 - ----------------------------------------------------------------------------------- Computer Software Continued Microsoft Corp./2/ 15,500 $ 934,844 - ----------------------------------------------------------------------------------- Peoplesoft, Inc./2/ 105,000 2,933,438 - ----------------------------------------------------------------------------------- Red Hat, Inc./2/ 20,000 341,250 - ----------------------------------------------------------------------------------- Sabre Holdings Corp. 60,000 1,736,250 - ----------------------------------------------------------------------------------- Synopsys, Inc./2/ 45,000 1,704,375 - ----------------------------------------------------------------------------------- Veritas Software Corp./1/,/2/ 4,000 568,000 - ----------------------------------------------------------------------------------- Yahoo!, Inc./1/,/2/ 7,200 655,200 ------------- 11,553,826 - ----------------------------------------------------------------------------------- Communications Equipment--0.5% Cisco Systems, Inc./1/,/2/ 38,000 2,099,500 - ----------------------------------------------------------------------------------- Lucent Technologies, Inc. 57,500 1,757,344 ------------- 3,856,844 - ----------------------------------------------------------------------------------- Electronics--6.2% Analog Devices, Inc./1/,/2/ 105,000 8,669,063 - ----------------------------------------------------------------------------------- ASM Lithography Holding NV/1/,/2/ 55,000 1,777,188 - ----------------------------------------------------------------------------------- Intel Corp./1/ 330,000 13,715,625 - ----------------------------------------------------------------------------------- JDS Uniphase Corp./1/,/2/ 5,000 473,438 - ----------------------------------------------------------------------------------- Keyence Corp. 13,530 4,682,787 - ----------------------------------------------------------------------------------- KLA Instruments Corp./2/ 55,000 2,265,313 - ----------------------------------------------------------------------------------- Lam Research Corp./2/ 57,000 1,193,438 - ----------------------------------------------------------------------------------- Loral Space & Communications Ltd./2/ 135,600 830,550 - ----------------------------------------------------------------------------------- Methode Electronics, Inc., Cl. A/1/ 90,000 3,988,125 - ----------------------------------------------------------------------------------- Motorola, Inc. 80,000 2,260,000 - ----------------------------------------------------------------------------------- QLogic Corp./1/,/2/ 6,000 528,000 - ----------------------------------------------------------------------------------- RF Micro Devices, Inc./2/ 17,500 560,000 - ----------------------------------------------------------------------------------- STMicroelectronics NV, NY Registered Shares 73,500 3,500,438 - ----------------------------------------------------------------------------------- Teradyne, Inc./1/,/2/ 45,000 1,575,000 ------------- 46,018,965 - ----------------------------------------------------------------------------------- Photography--0.6% Concord Camera Corp./2/ 42,000 1,076,250 - ----------------------------------------------------------------------------------- Eastman Kodak Co. 40,000 1,635,000 - ----------------------------------------------------------------------------------- Xerox Corp./2/ 97,500 1,468,594 ------------- 4,179,844 - ----------------------------------------------------------------------------------- Transportation--0.5% - ----------------------------------------------------------------------------------- Railroads & Truckers--0.5% Burlington Northern Santa Fe Corp. 81,000 1,746,563 - ----------------------------------------------------------------------------------- Werner Enterprises, Inc. 184,200 2,164,350 ------------- 3,910,913
17 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Market Value Shares See Note 1 - ----------------------------------------------------------------------------------------------------------------------- Utilities--0.7% - ----------------------------------------------------------------------------------------------------------------------- Electric Utilities--0.4% Southern Co. 100,000 $ 3,243,750 - ----------------------------------------------------------------------------------------------------------------------- Gas Utilities--0.3% Dynegy, Inc./1/ 46,000 2,622,000 -------------- Total Common Stocks (Cost $264,093,854) 404,429,215 ======================================================================================================================= Preferred Stocks--1.3% MediaOne Group, Inc., 7% Cv. Premium Income Exchangeable Securities for Vodafone Airtouch plc common stock 17,500 651,875 - ----------------------------------------------------------------------------------------------------------------------- Qwest Trends Trust, 5.75% Cv./4/ 105,000 8,268,750 - ----------------------------------------------------------------------------------------------------------------------- Sovereign Capital Trust II, 7.50% Cv. Preferred Income Equity Redeemable Stock, Units (each unit consists of one preferred plus one warrant to purchase 5.3355 shares of Sovereign Bancorp common stock)/5/ 12,500 717,969 -------------- Total Preferred Stocks (Cost $7,155,180) 9,638,594 Units ======================================================================================================================= Rights, Warrants and Certificates--0.0% - ----------------------------------------------------------------------------------------------------------------------- Adelphia Business Solutions, Inc. Wts., Exp. 4/15/01 550 39,806 - ----------------------------------------------------------------------------------------------------------------------- Comunicacion Celular SA Wts., Exp. 11/15/033 300 4,537 - ----------------------------------------------------------------------------------------------------------------------- Covergent Communications, Inc. Wts., Exp. 4/1/083 1,000 12,250 - ----------------------------------------------------------------------------------------------------------------------- Telesp Celular Participacoes SA Rts., Exp. 10/5/00 4,915,326 27 - ----------------------------------------------------------------------------------------------------------------------- In-Flight Phone Corp. Wts., Exp. 8/31/02 300 -- -------------- Total Rights, Warrants and Certificates (Cost $0) 56,620 Principal Amount ======================================================================================================================= Mortgage-Backed Obligations--4.1% - ----------------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Collateralized Mtg. Obligations, Gtd. Multiclass Mtg. Participation Certificates, Series 151, Cl. F, 9%, 5/15/21 $ 447,603 467,043 - ----------------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Gtd. Multiclass Mtg Participation Certificates, 7%, 5/1/29 6,266,913 6,151,352 - ----------------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security, Series 199, Cl. IO, 24.10%, 8/1/28 /6/ 1,331,529 421,928 - ----------------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn., 6.50%, 12/1/27-2/1/28 8,102,199 7,793,994 - ----------------------------------------------------------------------------------------------------------------------- Government National Mortgage Assn.: 7%, 4/15/26 2,722,330 2,685,008 7.375%, 3/20/26 312,528 314,679 7.50%, 5/15/27 11,196,905 11,235,870 - ----------------------------------------------------------------------------------------------------------------------- Mortgage Capital Funding, Inc., Multifamily Mtg. Pass-Through Certificates, Series 1996-MC1, Cl. G, 7.15%, 6/15/06 /4/ 400,000 340,148 - ----------------------------------------------------------------------------------------------------------------------- Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates: Series 1993-C1, Cl. D, 9.45%, 5/25/24 18,388 18,293 Series 1994-C2, Cl. E, 8%, 4/25/25 715,837 705,883 Series 1994-C2, Cl. G, 8%, 4/25/25 161,862 155,185
18 OPPENHEIMER MULTIPLE STRATEGIES FUND
Principal Market Value Amount See Note 1 ======================================================================================================== Mortgage-Backed Obligations Continued Salomon Brothers Mortgage Securities VII, Commercial Mtg. Pass-Through Certificates: Series 1996-B, Cl. 1, 7.136%, 4/25/26 /3/ $ 279,352 $ 184,547 Series 1996-C1, Cl. F, 8.875%, 1/20/06 /7/ 250,000 189,219 ------------ Total Mortgage-Backed Obligations (Cost $30,775,271) 30,663,149 ======================================================================================================== U.S. Government Obligations--11.1% - -------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn. Nts., 7.125%, 1/15/30 500,000 517,679 - -------------------------------------------------------------------------------------------------------- U.S. Treasury Bonds: 6%, 2/15/26 500,000 495,469 6.50%, 11/15/26 360,000 380,138 8.875%, 8/15/17 3,650,000 4,695,955 10.75%, 5/15/03 1,190,000 1,325,363 STRIPS, 6.30%, 8/15/25 /8/ 15,300,000 3,491,613 STRIPS, 6.53%, 8/15/15 /8/ 8,500,000 3,433,592 STRIPS, 7.10%, 11/15/18 /8/ 9,350,000 3,098,038 STRIPS, 7.31%, 8/15/19 /8/ 10,200,000 3,234,614 - -------------------------------------------------------------------------------------------------------- U.S. Treasury Nts.: 5.875%, 9/30/02-2/15/04 30,000,000 29,948,445 6.125%, 12/31/01 15,000,000 14,985,945 6.25%, 2/15/03-2/15/07 12,130,000 12,265,628 6.50%, 10/15/06 4,640,000 4,769,052 7.50%, 5/15/02 327,000 334,255 ------------ Total U.S. Government Obligations (Cost $82,112,806) 82,975,786 ======================================================================================================== Foreign Government Obligations--15.7% - -------------------------------------------------------------------------------------------------------- Argentina--3.9% Argentina (Republic of) Bonds, Bonos de Consolidacion de Deudas: Series FRB, 7.375%, 3/31/05 /7/ 6,848,000 6,269,344 Series PRE2, 6.62%, 4/1/01 /7/ 77,813 76,957 - -------------------------------------------------------------------------------------------------------- Argentina (Republic of) Nts.: 11.75%, 2/12/07 /4/[ARP] 150,000 135,081 14.25%, 11/30/02 /3/,/7/ 13,125,000 13,125,000 - -------------------------------------------------------------------------------------------------------- Argentina (Republic of) Par Bonds, 6%, 3/31/23 /7/ 14,000,000 9,520,000 ------------ 29,126,382 - -------------------------------------------------------------------------------------------------------- Australia--0.4% New South Wales Treasury Corp. Gtd. Bonds, 7%, 4/1/04[AUD] 1,570,000 863,163 - -------------------------------------------------------------------------------------------------------- Queensland Treasury Corp. Exchangeable Gtd. Nts., 10.50%, 5/15/03[AUD] 2,590,000 1,539,011 - -------------------------------------------------------------------------------------------------------- Queensland Treasury Corp. Global Exchangeable Gtd. Nts., 8%, 8/14/01[AUD] 615,000 337,181 ------------ 2,739,355
19 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ---------------------------------------------------------------------------------------------------- Brazil--3.5% Brazil (Federal Republic of) Debt Capitalization Bonds, Series 20 yr., 8%, 4/15/14 $ 21,180,252 $ 16,255,843 - ---------------------------------------------------------------------------------------------------- Brazil (Federal Republic of) Eligible Interest Bonds, 7.375%, 4/15/06 /7/ 10,555,500 9,961,753 -------------- 26,217,596 - ---------------------------------------------------------------------------------------------------- Canada--2.8% Canada (Government of) Bonds: 6.50%, 6/1/04[CAD] 13,320,000 9,073,907 8.75%, 12/1/05[CAD] 495,000 372,428 9.75%, 6/1/01[CAD] 9,630,000 6,578,623 11.75%, 2/1/03[CAD] 290,000 217,729 Series WL43, 5.75%, 6/1/29[CAD] 7,130,000 4,821,730 -------------- 21,064,417 - ---------------------------------------------------------------------------------------------------- Denmark--0.4% Denmark (Kingdom of) Bonds, 8%, 3/15/06[DKK] 21,900,000 2,864,755 - ---------------------------------------------------------------------------------------------------- Finland--0.1% Finland (Republic of) Bonds, Series RG, 9.50%, 3/15/04[EUR] 672,751 670,867 - ---------------------------------------------------------------------------------------------------- Germany--0.2% Germany (Republic of) Bonds, Series 94, 6.25%, 1/4/24[EUR] 1,362,592 1,289,308 - ---------------------------------------------------------------------------------------------------- Great Britain--1.1% United Kingdom Treasury Bonds: 7%, 6/7/02[GBP] 2,415,000 3,635,852 7.25%, 12/7/07[GBP] 2,400,000 3,920,982 10%, 9/8/03[GBP] 325,000 533,033 -------------- 8,089,867 - ---------------------------------------------------------------------------------------------------- Italy--0.0% Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali, 9.50%, 2/1/01[EUR] 209,164 187,172 - ---------------------------------------------------------------------------------------------------- Mexico--0.0% United Mexican States Bonds, Series RG, 16.50%, 9/1/08 /3/ [GBP] 35,000 72,317 - ---------------------------------------------------------------------------------------------------- New Zealand--2.4% New Zealand (Government of) Bonds, 10%, 3/15/02[NZD] 42,705,000 18,124,882 - ---------------------------------------------------------------------------------------------------- Philippines--0.2% Philippines (Republic of) Bonds, 8.60%, 6/15/27 1,500,000 1,023,750 - ---------------------------------------------------------------------------------------------------- Poland--0.5% Poland (Republic of) Bonds,12%, 6/12/01[PLZ] 18,000,000 3,792,358 - ---------------------------------------------------------------------------------------------------- South Africa--0.2% Eskom Depositary Receipts, Series E168, 11%, 6/1/08[ZAR] 6,430,000 769,890 - ---------------------------------------------------------------------------------------------------- Eskom Sec. Bonds, Series E168, 11%, 6/1/08[ZAR] 3,000,000 359,202 -------------- 1,129,092 - ---------------------------------------------------------------------------------------------------- Spain--0.0% Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado, 10.30%, 6/15/02[EUR] 235,296 224,410 -------------- Total Foreign Government Obligations (Cost $122,284,891) 116,616,528
20 OPPENHEIMER MULTIPLE STRATEGIES FUND
Principal Market Value Amount See Note 1 ========================================================================================================================= Loan Participations--0.1% - ------------------------------------------------------------------------------------------------------------------------- Morocco (Kingdom of) Loan Participation Agreement, Tranche A, 7.75%, 1/1/09/3,/7/ (Cost $495,679) $ 538,333 $ 485,846 ========================================================================================================================= Non-Convertible Corporate Bonds and Notes--6.8% - ------------------------------------------------------------------------------------------------------------------------- ABN Amro Bank NV (NY Branch), 7.125% Sub. Nts., Series B, 10/15/93 500,000 436,063 - ------------------------------------------------------------------------------------------------------------------------- Adelphia Communications Corp.: 9.375% Sr. Nts., 11/15/09 750,000 683,437 10.50% Sr. Unsec. Nts., Series B, 7/15/04 500,000 503,125 - ------------------------------------------------------------------------------------------------------------------------- AK Steel Corp., 9.125% Sr. Nts., 12/15/06 795,000 775,125 - ------------------------------------------------------------------------------------------------------------------------- Allied Waste North America, Inc., 10% Sr. Unsec Sub. Nts., Series B, 8/1/09 750,000 658,125 - ------------------------------------------------------------------------------------------------------------------------- AMC Entertainment, Inc., 9.50% Sr. Unsec. Sub. Nts., 2/1/11 600,000 279,000 - ------------------------------------------------------------------------------------------------------------------------- American International Group, Inc., 11.70% Unsec. Unsub. Bonds, 12/4/01[ITL] 95,000,000 46,280 - ------------------------------------------------------------------------------------------------------------------------- Amgen, Inc., 8.125% Unsec. Debs., 4/1/97 110,000 111,515 - ------------------------------------------------------------------------------------------------------------------------- Amkor Technologies, Inc., 9.25% Sr. Unsec. Nts., 5/1/06 500,000 498,750 - ------------------------------------------------------------------------------------------------------------------------- AMRESCO, Inc., 10% Sr. Sub. Nts., Series 97-A, 3/15/04 200,000 89,000 - ------------------------------------------------------------------------------------------------------------------------- Amtran, Inc., 10.50% Sr. Nts., 8/1/04 500,000 467,500 - ------------------------------------------------------------------------------------------------------------------------- Aracruz Celulose SA, 10.375% Debs., 1/31/02 /4/ 320,000 327,200 - ------------------------------------------------------------------------------------------------------------------------- Aurora Foods, Inc., 8.75% Sr. Sub. Nts., Series B, 7/1/08 400,000 308,000 - ------------------------------------------------------------------------------------------------------------------------- Bank of America Corp., 7.80% Jr. Unsec. Sub. Nts., 2/15/10 500,000 515,461 - ------------------------------------------------------------------------------------------------------------------------- Blount, Inc., 13% Sr. Sub. Nts., 8/1/09 700,000 717,500 - ------------------------------------------------------------------------------------------------------------------------- Building Materials Corp. of America, 8.625% Sr. Nts., Series B, 12/15/06 200,000 133,000 - ------------------------------------------------------------------------------------------------------------------------- Calpine Corp., 8.75% Sr. Nts., 7/15/07 650,000 644,451 - ------------------------------------------------------------------------------------------------------------------------- Canandaigua Brands, Inc., 8.625% Sr. Unsec. Nts., 8/1/06 750,000 761,250 - ------------------------------------------------------------------------------------------------------------------------- Caterpillar, Inc., 7.375% Unsec. Debs., 3/1/97 500,000 453,279 - ------------------------------------------------------------------------------------------------------------------------- Celcaribe SA, 14.50% Sr. Sec. Nts., 3/15/04 /3/ 350,000 275,625 - ------------------------------------------------------------------------------------------------------------------------- Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.: 0%/9.92% Sr. Unsec. Disc. Nts., 4/1/11 /9/ 500,000 293,750 8.625% Sr. Unsec. Nts., 4/1/09 750,000 676,875 - ------------------------------------------------------------------------------------------------------------------------- Chesapeake Energy Corp., 9.625% Sr. Unsec. Nts., Series B, 5/1/05 500,000 498,750 - ------------------------------------------------------------------------------------------------------------------------- Coca-Cola Co., 7.375% Debs., 7/29/93 440,000 419,740 - ------------------------------------------------------------------------------------------------------------------------- Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs., 11/15/07 /9/ 850,000 820,250 - ------------------------------------------------------------------------------------------------------------------------- Communications & Power Industries, Inc., 12% Sr. Sub. Nts., Series B, 8/1/05 /3/ 1,300,000 890,500 - ------------------------------------------------------------------------------------------------------------------------- Conoco, Inc., 6.95% Sr. Unsec. Nts., 4/15/29 500,000 462,823 - ------------------------------------------------------------------------------------------------------------------------- Crown Castle International Corp.: 9% Sr. Nts., 5/15/11 500,000 477,500 10.75% Sr. Nts., 8/1/11 500,000 516,250 - ------------------------------------------------------------------------------------------------------------------------- CSC Holdings, Inc.: 9.875% Sr. Sub. Debs., 2/15/13 250,000 256,875 10.50% Sr. Sub. Debs., 5/15/16 250,000 269,375 - ------------------------------------------------------------------------------------------------------------------------- Cumulus Media, Inc., 10.375% Sr. Unsec. Sub. Nts., 7/1/08 400,000 342,000
21 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 =============================================================================================================== Non-Convertible Corporate Bonds and Notes Continued D.R. Horton, Inc., 9.75% Sr. Sub. Nts., 9/15/10 $ 600,000 $ 585,000 - --------------------------------------------------------------------------------------------------------------- Diamond Cable Communications plc, 0%/11.75% Sr. Disc. Nts., 12/15/05 /9/ 300,000 283,500 - --------------------------------------------------------------------------------------------------------------- Doman Industries Ltd., 8.75% Sr. Nts., 3/15/04 700,000 472,500 - --------------------------------------------------------------------------------------------------------------- Dyncorp, Inc., 9.50% Sr. Sub. Nts., 3/1/07 100,000 77,375 - --------------------------------------------------------------------------------------------------------------- EchoStar Broadband Corp., 10.375% Sr. Nts., 10/1/07 /4/ 600,000 600,000 - --------------------------------------------------------------------------------------------------------------- EchoStar DBS Corp., 9.375% Sr. Unsec. Nts., 2/1/09 700,000 689,500 - --------------------------------------------------------------------------------------------------------------- El Paso Electric Co., 9.40% First Mtg. Sec. Nts., Series E, 5/1/11 250,000 266,043 - --------------------------------------------------------------------------------------------------------------- Empresas ICA Sociedad Controladora SA de CV, 11.875% Nts., 5/30/01 /3/ 30,000 29,175 - --------------------------------------------------------------------------------------------------------------- Exodus Communications, Inc.: 11.25% Sr. Nts., 7/1/08 500,000 498,750 11.25% Sr. Nts., 7/15/10/4 400,000 403,000 - --------------------------------------------------------------------------------------------------------------- Fleming Cos., Inc., 10.625% Sr. Sub. Nts., Series B, 7/31/07 600,000 483,000 - --------------------------------------------------------------------------------------------------------------- Fletcher Challenge Ltd.: 8.05% Cv. Nts., 6/15/03[NZD] 35,000 14,107 10% Cv. Unsec. Sub. Nts., 4/30/05[NZD] 35,000 14,903 - --------------------------------------------------------------------------------------------------------------- Ford Motor Co., 7.70% Unsec. Debs., 5/15/97 500,000 452,353 - --------------------------------------------------------------------------------------------------------------- Frontier Oil Corp., 11.75% Sr. Nts., 11/15/09 250,000 255,000 - --------------------------------------------------------------------------------------------------------------- Global Crossing Holdings Ltd., 9.625% Sr. Unsec. Nts., 5/15/08 750,000 753,750 - --------------------------------------------------------------------------------------------------------------- Goldman Sachs Group, Inc. (The), 7.80% Sr. Unsec Unsub. Nts., Series B, 1/28/10 500,000 510,361 - --------------------------------------------------------------------------------------------------------------- Gothic Production Corp., 11.125% Sr. Sec. Nts., Series B, 5/1/05 950,000 999,875 - --------------------------------------------------------------------------------------------------------------- Grupo Posadas SA de CV, 10.375% Unsec. Unsub. Bonds, 2/13/02 25,000 23,944 - --------------------------------------------------------------------------------------------------------------- Hayes Wheels International, Inc., 11% Sr. Sub. Nts., 7/15/06 200,000 192,000 - --------------------------------------------------------------------------------------------------------------- Huntsman Corp./ICI Chemical Co. plc, Zero Coupon Sr. Unsec. Disc. Nts., 13.08%, 12/31/09 /8/ 1,000,000 325,000 - --------------------------------------------------------------------------------------------------------------- IBM Corp., 7.125% Sr. Unsec. Unsub. Debs., 12/1/96 500,000 469,541 - --------------------------------------------------------------------------------------------------------------- Intermedia Communications, Inc., 8.50% Sr. Nts., Series B, 1/15/08 500,000 481,250 - --------------------------------------------------------------------------------------------------------------- International Wire Group, Inc., 11.75% Sr. Sub. Nts., Series B, 6/1/05 500,000 505,000 - --------------------------------------------------------------------------------------------------------------- Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 500,000 462,500 - --------------------------------------------------------------------------------------------------------------- Kaufman & Broad Home Corp., 7.75% Sr. Nts., 10/15/04 400,000 382,500 - --------------------------------------------------------------------------------------------------------------- Lamar Media Corp., 9.625% Sr. Unsec. Sub. Nts., 12/1/06 100,000 102,875 - --------------------------------------------------------------------------------------------------------------- Lear Corp., 9.50% Sub. Nts., 7/15/06 900,000 891,000 - --------------------------------------------------------------------------------------------------------------- Level 3 Communications, Inc., 11% Sr. Unsec. Nts., 3/15/08 300,000 288,000 - --------------------------------------------------------------------------------------------------------------- Loral Space & Communications Ltd., 9.50% Sr. Nts., 1/15/06 300,000 216,000 - --------------------------------------------------------------------------------------------------------------- Lyondell Chemical Co.: 9.625% Sr. Sec. Nts., Series A, 5/1/07 300,000 293,625 9.875% Sec. Nts., Series B, 5/1/07 300,000 293,625 - --------------------------------------------------------------------------------------------------------------- Meristar Hospitality Corp., 8.75% Sr. Unsec. Sub. Nts., 8/15/07 500,000 471,250 - --------------------------------------------------------------------------------------------------------------- Metromedia Fiber Network, Inc.: 10% Sr. Nts., 12/15/09 250,000 235,000 10% Sr. Unsec. Nts., Series B, 11/15/08 750,000 705,000 - --------------------------------------------------------------------------------------------------------------- Millicom International Cellular SA, 0%/13.50% Sr. Disc. Nts., 6/1/06 /9/ 750,000 648,750 - --------------------------------------------------------------------------------------------------------------- Motorola, Inc., 5.22% Unsec. Debs., 10/1/97 170,000 111,054
22 OPPENHEIMER MULTIPLE STRATEGIES FUND
Principal Market Value Amount See Note 1 ============================================================================================================== Non-Convertible Corporate Bonds and Notes Continued News America Holdings, Inc., 8.50% Sr. Nts., 2/15/05 $1,000,000 $1,044,669 - -------------------------------------------------------------------------------------------------------------- Nextel Communications, Inc.: 0%/9.95% Sr. Disc. Nts., 2/15/08 /9/ 300,000 230,250 9.375% Sr. Unsec. Nts., 11/15/09 500,000 490,000 - -------------------------------------------------------------------------------------------------------------- NEXTLINK Communications, Inc., 10.75% Sr. Unsec. Nts., 6/1/09 500,000 465,000 - -------------------------------------------------------------------------------------------------------------- NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 183,000 185,745 - -------------------------------------------------------------------------------------------------------------- Norfolk Southern Corp., 7.90% Sr. Bonds, 5/15/97 500,000 471,101 - -------------------------------------------------------------------------------------------------------------- NTL, Inc., 0%/9.75% Sr. Deferred Coupon Nts., Series B, 4/1/08/9/ 500,000 306,250 - -------------------------------------------------------------------------------------------------------------- Ocwen Financial Corp., 11.875% Nts., 10/1/03 /3/ 325,000 287,625 - -------------------------------------------------------------------------------------------------------------- Omnipoint Corp., 11.50% Sr. Nts., 9/15/09 /4/ 250,000 280,000 - -------------------------------------------------------------------------------------------------------------- ORBCOMM Global LP/ORBCOMM Capital Corp., 14% Sr. Nts., 8/15/04 /3/,/10/ 155,000 24,025 - -------------------------------------------------------------------------------------------------------------- Oxford Automotive, Inc., 10.125% Sr. Unsec. Sub. Nts., Series D, 6/15/07 900,000 796,500 - -------------------------------------------------------------------------------------------------------------- Polymer Group, Inc., 9% Sr. Unsec. Sub. Nts., Series B, 7/1/07 1,000,000 775,000 - -------------------------------------------------------------------------------------------------------------- PSINet, Inc., 10% Sr. Unsec. Nts., Series B, 2/15/05 750,000 491,250 - -------------------------------------------------------------------------------------------------------------- R&B Falcon Corp., 9.50% Sr. Unsec. Nts., 12/15/08 750,000 811,875 - -------------------------------------------------------------------------------------------------------------- Repap New Brunswick, Inc.: 10.625% Second Priority Sr. Sec. Nts., 4/15/05 300,000 310,500 11.50% Sr. Sec. Nts., 6/1/04 300,000 334,500 - -------------------------------------------------------------------------------------------------------------- Revlon Consumer Products Corp., 9% Sr. Nts., 11/1/06 200,000 146,000 - -------------------------------------------------------------------------------------------------------------- Riverwood International Corp.: 10.625% Sr. Unsec. Nts., 8/1/07 500,000 503,125 10.875% Sr. Sub. Nts., 4/1/08 250,000 230,000 - -------------------------------------------------------------------------------------------------------------- Rogers Cablesystems Ltd., 10% Second Priority Sr. Sec. Debs., 12/1/07 /3/ 1,300,000 1,365,000 - -------------------------------------------------------------------------------------------------------------- Rohm & Haas Co., 7.85% Unsec. Debs., 7/15/29 500,000 493,841 - -------------------------------------------------------------------------------------------------------------- Rural Cellular Corp., 9.625% Sr. Sub. Nts., Series B, 5/15/08 750,000 720,000 - -------------------------------------------------------------------------------------------------------------- Sinclair Broadcast Group, Inc.: 8.75% Sr. Sub. Nts., 12/15/07 500,000 466,250 9% Sr. Unsec. Sub. Nts., 7/15/07 375,000 356,250 - -------------------------------------------------------------------------------------------------------------- Spectrasite Holdings, Inc., 10.75% Sr. Nts., 3/15/10 /4/ 500,000 475,000 - -------------------------------------------------------------------------------------------------------------- Sterling Chemicals, Inc.: 11.75% Sr. Unsec. Sub. Nts., 8/15/06 670,000 472,350 12.375% Sr. Sec. Nts., Series B, 7/15/06 400,000 406,000 - -------------------------------------------------------------------------------------------------------------- Subic Power Corp., 9.50% Sr. Sec. Nts., 12/28/08 /3/ 275,862 251,034 - -------------------------------------------------------------------------------------------------------------- Subic Power Corp., 9.50% Sr. Sec. Nts., 12/28/08 /3/ 55,172 50,207 - -------------------------------------------------------------------------------------------------------------- Sun Healthcare Group, Inc., 9.375% Sr. Sub. Nts., 5/1/08 /2/,/3/,/10/ 400,000 14,000 - -------------------------------------------------------------------------------------------------------------- Telewest Communications plc, 0%/11% Sr. Disc. Debs., 10/1/07 /9/ 1,000,000 962,500 - -------------------------------------------------------------------------------------------------------------- Tenet Healthcare Corp.: 8.125% Sr. Unsec. Sub. Nts., Series B, 12/1/08 300,000 288,750 9.25% Sr. Nts., 9/1/10 /4/ 300,000 315,000 - -------------------------------------------------------------------------------------------------------------- Tenneco, Inc., 11.625% Sr. Unsec. Sub. Nts., Series B, 10/15/09 475,000 306,375 - -------------------------------------------------------------------------------------------------------------- Trans World Airlines, Inc., 11.50% Sr. Sec. Nts., 12/15/04 950,000 665,000 - -------------------------------------------------------------------------------------------------------------- Transtar Holdings LP/Transtar Capital Corp., 13.375% Sr. Disc. Nts., Series B, 12/15/03 1,000,000 1,015,000 - -------------------------------------------------------------------------------------------------------------- Travelers Group, Inc., 6.875% Unsec. Nts., 2/15/98 550,000 485,364
23 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 ====================================================================================================================== Non-Convertible Corporate Bonds and Notes Continued TV Azteca SA de CV, 10.50% Sr. Nts., Series B, 2/15/07 $ 200,000 $ 186,000 - ---------------------------------------------------------------------------------------------------------------------- Unifrax Investment Corp., 10.50% Sr. Nts., 11/1/03 /3/ 500,000 472,500 - ---------------------------------------------------------------------------------------------------------------------- United Pan-Europe Communications NV, 10.875% Sr. Unsec. Nts., Series B, 8/1/09 400,000 342,000 - ---------------------------------------------------------------------------------------------------------------------- United Rentals, Inc., 9% Sr. Unsec. Sub. Nts., Series B, 4/1/09 500,000 450,000 - ---------------------------------------------------------------------------------------------------------------------- Vodafone AirTouch plc, 7.75% Unsec. Unsub. Nts., 2/15/10 /4/ 500,000 510,448 - ---------------------------------------------------------------------------------------------------------------------- VoiceStream Wireless Corp., 10.375% Sr. Unsec. Nts., 11/15/09 1,082,364 1,174,366 - ---------------------------------------------------------------------------------------------------------------------- Wal-Mart Stores, Inc., 7.55% Sr. Unsec. Nts., 2/15/30 500,000 517,445 - ---------------------------------------------------------------------------------------------------------------------- WorldCom, Inc., 6.95% Sr. Unsec. Nts., 8/15/28 500,000 453,935 - ---------------------------------------------------------------------------------------------------------------------- Young Broadcasting, Inc., 8.75% Sr. Sub. Debs., 6/15/07 700,000 665,000 -------------- Total Non-Convertible Corporate Bonds and Notes (Cost $54,264,525) 51,157,510 ====================================================================================================================== Convertible Corporate Bonds and Notes--0.6% - ---------------------------------------------------------------------------------------------------------------------- Affymetrix, Inc., 4.75% Cv. Sub. Nts., 2/15/07 /4/ 1,000,000 597,500 - ---------------------------------------------------------------------------------------------------------------------- Amkor Technologies, Inc., 5% Cv. Nts., 3/15/07 /4/ 750,000 600,000 - ---------------------------------------------------------------------------------------------------------------------- Juniper Networks, Inc., 4.75% Cv. Unsec. Sub. Nts., 3/15/07 600,000 913,500 - ---------------------------------------------------------------------------------------------------------------------- Level 3 Communications, Inc., 6% Cv. Unsec. Sub. Nts., 3/15/10 500,000 425,625 - ---------------------------------------------------------------------------------------------------------------------- LSI Logic Corp., 4% Cv. Unsec. Sub. Nts., 2/15/05 500,000 405,625 - ---------------------------------------------------------------------------------------------------------------------- Nextel Communications, Inc., 5.25% Cv. Sr. Nts., 1/15/10 /4/ 700,000 659,750 - ---------------------------------------------------------------------------------------------------------------------- Photronics, Inc., 6% Cv. Sub. Nts., 6/1/04 750,000 725,625 -------------- Total Convertible Corporate Bonds and Notes (Cost $4,208,188) 4,327,625 ====================================================================================================================== Structured Instruments--0.0% Credit Suisse First Boston Corp. (New York Branch), Carnival Corp. Equity Linked Nts., 7%, 7/17/023 (Cost $249,487) 255,000 283,050 Date Strike Contracts ====================================================================================================================== Options Purchased--0.0% Philip Morris Cos., Inc. Call (Cost $79,800) 1/22/01 $35 350 41,562 Principal Amount ====================================================================================================================== Repurchase Agreements--5.5% Repurchase agreement with Zion First National Bank, 6.50%, dated 9/29/00, to be repurchased at $40,925,156 on 10/2/00, collateralized by U.S. Treasury Bonds, 10.75%, 2/15/03, with a value of $4,561,234 and U.S. Treasury Nts., 5.75%-6.375%, 6/30/01-10/31/02, with a value of $37,190,007 (Cost $40,903,000) $ 40,903,000 40,903,000 - ---------------------------------------------------------------------------------------------------------------------- Total Investments, at Value (Cost $606,622,681) 99.5% 741,578,485 - ---------------------------------------------------------------------------------------------------------------------- Other Assets Net of Liabilities 0.5 3,369,243 -------------------------------------- Net Assets 100.0% $744,947,728 ======================================
24 OPPENHEIMER MULTIPLE STRATEGIES FUND Footnotes to Statement of Investments Principal amount is reported in U.S. Dollars, except for those denoted in the following currencies: ARP Argentine Peso GBP British Pound Sterling AUD Australian Dollar ITL Italian Lira CAD Canadian Dollar NZD New Zealand Dollar DKK Danish Krone PLZ Polish Zloty EUR Euro ZAR South African Rand 1. A sufficient amount of liquid assets has been designated to cover outstanding written call options, as follows:
Contracts Expiration Exercise Premium Market Value Subject to Call Date Price Received See Note 1 - ------------------------------------------------------------------------------------------------------------------------ ACE Ltd. 500 11/20/00 $ 30.00 $129,750 $456,250 - ------------------------------------------------------------------------------------------------------------------------ ASM Lithography Holding NV 80 10/23/00 50.00 27,760 -- - ------------------------------------------------------------------------------------------------------------------------ Abbott Laboratories 120 11/20/00 45.00 34,140 45,000 - ------------------------------------------------------------------------------------------------------------------------ Aetna, Inc. 275 1/22/01 80.00 74,800 -- - ------------------------------------------------------------------------------------------------------------------------ Affymetrix, Inc. 48 11/20/00 120.00 56,628 300 - ------------------------------------------------------------------------------------------------------------------------ American Home Products Corp. 140 10/23/00 70.00 59,080 875 - ------------------------------------------------------------------------------------------------------------------------ Analog Devices, Inc. 360 12/18/00 95.00 435,420 211,500 - ------------------------------------------------------------------------------------------------------------------------ Brocade Communications Systems, Inc. 27 1/22/01 200.00 32,993 148,500 - ------------------------------------------------------------------------------------------------------------------------ Callaway Golf Co. 440 11/20/00 22.50 66,035 -- - ------------------------------------------------------------------------------------------------------------------------ Chase Manhattan Corp. 210 12/18/00 70.00 49,243 -- - ------------------------------------------------------------------------------------------------------------------------ Cisco Systems, Inc. 96 1/22/01 85.00 34,511 7,200 - ------------------------------------------------------------------------------------------------------------------------ Clear Channel Communications, Inc. 40 1/22/01 90.00 29,880 1,750 - ------------------------------------------------------------------------------------------------------------------------ Coherent, Inc. 160 11/20/00 85.00 80,317 36,000 - ------------------------------------------------------------------------------------------------------------------------ Computer Associates International, Inc. 150 11/20/00 80.00 30,488 -- - ------------------------------------------------------------------------------------------------------------------------ Cooper Cameron Corp. 11 2/19/01 85.00 9,867 8,113 - ------------------------------------------------------------------------------------------------------------------------ Dynegy, Inc. 75 3/19/01 55.00 38,211 75,000 - ------------------------------------------------------------------------------------------------------------------------ Dynegy, Inc. 50 3/19/01 60.00 34,224 37,500 - ------------------------------------------------------------------------------------------------------------------------ Goodrich (B.F.) Co. 300 11/20/00 45.00 29,099 13,125 - ------------------------------------------------------------------------------------------------------------------------ Human Genome Sciences, Inc. 38 10/23/00 160.000 51,186 77,900 - ------------------------------------------------------------------------------------------------------------------------ Human Genome Sciences, Inc. 37 10/23/00 220.00 24,864 8,788 - ------------------------------------------------------------------------------------------------------------------------ Human Genome Sciences, Inc. 30 4/21/01 210.00 99,282 99,750 - ------------------------------------------------------------------------------------------------------------------------ i2 Technologies, Inc. 45 11/20/00 210.00 33,614 68,063 - ------------------------------------------------------------------------------------------------------------------------ Input/Output, Inc. 2,380 11/20/00 7.50 349,860 520,625 - ------------------------------------------------------------------------------------------------------------------------ Intel Corp. 500 1/22/01 90.00 158,625 6,250 - ------------------------------------------------------------------------------------------------------------------------ International Game Technology 321 10/23/00 30.00 63,235 148,463 - ------------------------------------------------------------------------------------------------------------------------ JDS Uniphase Corp. 50 12/18/00 140.00 46,723 14,375 - ------------------------------------------------------------------------------------------------------------------------ Johnson & Johnson 80 1/22/01 115.00 20,760 6,500 - ------------------------------------------------------------------------------------------------------------------------ Jones Apparel Group, Inc. 400 11/20/00 30.00 163,800 22,500 - ------------------------------------------------------------------------------------------------------------------------ Knight Trading Group, Inc. 6 1/22/01 45.00 1,782 1,088 - ------------------------------------------------------------------------------------------------------------------------ Knight Trading Group, Inc. 14 1/22/01 50.00 2,758 1,488 - ------------------------------------------------------------------------------------------------------------------------ Merck & Co., Inc. 84 1/22/01 100.00 15,497 1,575 - ------------------------------------------------------------------------------------------------------------------------ Methode Electronics, Inc., Cl. A 230 10/23/00 65.00 88,432 1,438 - ------------------------------------------------------------------------------------------------------------------------ QLogic Corp. 60 10/23/00 120.00 50,818 4,500 - ------------------------------------------------------------------------------------------------------------------------ Santa Fe International Corp. 115 1/22/01 50.00 25,530 29,469 - ------------------------------------------------------------------------------------------------------------------------ St. Jude Medical, Inc. 80 10/23/00 40.00 20,760 88,000 - ------------------------------------------------------------------------------------------------------------------------ Teradyne, Inc. 33 10/23/00 105.00 63,426 -- - ------------------------------------------------------------------------------------------------------------------------ Teradyne, Inc. 33 10/23/00 120.00 39,500 --
25 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- Footnotes to Statement of Investments Continued 1. Outstanding written call options:
Contracts Expiration Exercise Premium Market Value Subject to Call Date Price Received See Note 1 - ------------------------------------------------------------------------------------------------------------ Toll Brothers, Inc. 52 12/18/00 $ 20.00 $ 19,344 $ 74,100 - ------------------------------------------------------------------------------------------------------------ Transocean Sedco Forex, Inc. 116 11/20/00 60.00 64,670 42,050 - ------------------------------------------------------------------------------------------------------------ UnitedHealth Group, Inc. 205 12/18/00 80.00 213,133 466,375 - ------------------------------------------------------------------------------------------------------------ Veritas Software Corp. 40 11/20/00 220.00 45,878 3,750 - ------------------------------------------------------------------------------------------------------------ Viacom, Inc., Cl. B 240 1/22/01 80.00 74,280 10,500 - ------------------------------------------------------------------------------------------------------------ Yahoo!, Inc. 9 1/22/01 270.00 4,698 109 - ------------------------------------------------------------------------------------------------------------ Yahoo!, Inc. 9 10/23/00 270.00 19,323 -- ----------------------------- $3,014,224 $2,738,769 =============================
2. Non-income-producing security. 3. Identifies issues considered to be illiquid or restricted--see Note 7 of Notes to Financial Statements. 4. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $13,727,377 or 1.84% of the Fund's net assets as of September 30, 2000. 5. Units may be comprised of several components, such as debt and equity and/or warrants to purchase equity at some point in the future. For units which represent debt securities, principal amount disclosed represents total underlying principal. 6. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. 7. Represents the current interest rate for a variable or increasing rate security. 8. For zero coupon bonds, the interest rate shown is the effective yield on the date of purchase. 9. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date. 10. Issuer is in default. See accompanying Notes to Financial Statements. 26 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES September 30, 2000 - --------------------------------------------------------------------------------
========================================================================================================= Assets - --------------------------------------------------------------------------------------------------------- Investments, at value (cost $606,622,681)--see accompanying statement $741,578,485 - --------------------------------------------------------------------------------------------------------- Cash 1,042,496 - --------------------------------------------------------------------------------------------------------- Cash--foreign currencies (cost $15,259) 15,259 - --------------------------------------------------------------------------------------------------------- Receivables and other assets: Interest, dividends and principal paydowns 6,118,130 Investments sold 2,956,418 Shares of beneficial interest sold 176,056 Other 1,008 ------------ Total assets 751,887,852 ========================================================================================================= Liabilities - --------------------------------------------------------------------------------------------------------- Options written, at value (premiums received $3,014,224)--see accompanying statement 2,738,769 - --------------------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased 2,451,326 Shares of beneficial interest redeemed 464,637 Distribution and service plan fees 385,117 Shareholder reports 318,734 Transfer and shareholder servicing agent fees 258,928 Trustees' compensation 247,683 Other 74,930 ------------ Total liabilities 6,940,124 ========================================================================================================= Net Assets $744,947,728 ============ ========================================================================================================= Composition of Net Assets - --------------------------------------------------------------------------------------------------------- Paid-in capital $577,699,547 - --------------------------------------------------------------------------------------------------------- Undistributed net investment income 3,544,970 - --------------------------------------------------------------------------------------------------------- Accumulated net realized gain on investments and foreign currency transactions 28,509,692 - --------------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 135,193,519 ------------ Net Assets $744,947,728 ============ ========================================================================================================= Net Asset Value Per Share - --------------------------------------------------------------------------------------------------------- Class A Shares: Net asset value and redemption price per share (based on net assets of $639,647,994 and 44,965,084 shares of beneficial interest outstanding) $14.23 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $15.10 - --------------------------------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $66,777,351 and 4,741,712 shares of beneficial interest outstanding) $14.08 - --------------------------------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $38,522,383 and 2,726,101 shares of beneficial interest outstanding) $14.13
See accompanying Notes to Financial Statements. 27 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS For the Year Ended September 30, 2000 - --------------------------------------------------------------------------------
===================================================================================== Investment Income - ------------------------------------------------------------------------------------- Interest (net of foreign withholding taxes of $2,041) $ 29,285,297 - ------------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $89,046) 7,054,745 ------------ Total income 36,340,042 ===================================================================================== Expenses - ------------------------------------------------------------------------------------- Management fees 5,313,004 - ------------------------------------------------------------------------------------- Distribution and service plan fees: Class A 1,249,743 Class B 670,083 Class C 386,245 - ------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees 972,854 - ------------------------------------------------------------------------------------- Shareholder reports 462,811 - ------------------------------------------------------------------------------------- Custodian fees and expenses 117,942 - ------------------------------------------------------------------------------------- Trustees' compensation 75,797 - ------------------------------------------------------------------------------------- Other 108,510 ------------ Total expenses 9,356,989 Less expenses paid indirectly (8,431) ------------ Net expenses 9,348,558 ===================================================================================== Net Investment Income 26,991,484 ===================================================================================== Realized and Unrealized Gain (Loss) Net realized gain (loss) on: - ------------------------------------------------------------------------------------- Investments (including premiums on options exercised) 39,858,318 Closing and expiration of option contracts written 2,476,784 Foreign currency transactions (7,214,861) ------------ Net realized gain 35,120,241 - ------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments 34,232,845 Translation of assets and liabilities denominated in foreign currencies (4,320,024) ------------ Net change 29,912,821 ------------ Net realized and unrealized gain 65,033,062 ===================================================================================== Net Increase in Net Assets Resulting from Operations $ 92,024,546 - -------------------------------------------------------------------------------------
See accompanying Notes to Financial Statements. 28 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
Year Ended September 30, 2000 1999 ================================================================================================== Operations - -------------------------------------------------------------------------------------------------- Net investment income $ 26,991,484 $ 27,747,152 - -------------------------------------------------------------------------------------------------- Net realized gain 35,120,241 64,301,098 - -------------------------------------------------------------------------------------------------- Net change in unrealized appreciation 29,912,821 24,384,903 ------------------------------------- Net increase in net assets resulting from operations 92,024,546 116,433,153 ================================================================================================== Dividends and/or Distributions to Shareholders - -------------------------------------------------------------------------------------------------- Dividends from net investment income: Class A (21,779,999) (24,477,711) Class B (1,694,849) (2,100,116) Class C (978,026) (1,206,196) - -------------------------------------------------------------------------------------------------- Distributions from net realized gain: Class A (48,515,731) (54,659,946) Class B (5,165,726) (6,391,151) Class C (2,993,063) (3,772,922) ================================================================================================== Beneficial Interest Transactions - -------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from beneficial interest transactions: Class A (5,424,882) (9,204,354) Class B (3,023,844) (6,385,889) Class C (956,723) (11,126,627) ================================================================================================== Net Assets - -------------------------------------------------------------------------------------------------- Total increase (decrease) 1,491,703 (2,891,759) - -------------------------------------------------------------------------------------------------- Beginning of period 743,456,025 746,347,784 ------------------------------------- End of period (including undistributed net investment income of $3,544,970 and $1,169,787, respectively) $ 744,947,728 $ 743,456,025 =====================================
See accompanying Notes to Financial Statements. 29 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
Year Year Ended Ended Sept. 30, Dec. 31, Class A 2000 1999 1998 1997 1996/1/ 1995 ================================================================================================================================= Per Share Operating Data - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 14.06 $ 13.69 $ 16.17 $ 14.09 $ 13.07 $ 11.52 - --------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .53 .54 .51 .50 .49 .52 Net realized and unrealized gain (loss) 1.21 1.59 (1.22) 2.88 .96 2.08 ------------------------------------------------------------------------------------ Total income (loss) from investment operations 1.74 2.13 (.71) 3.38 1.45 2.60 - --------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.48) (.54) (.49) (.51) (.43) (.49) Distributions from net realized gain (1.09) (1.22) (1.28) (.79) -- (.56) ------------------------------------------------------------------------------------ Total dividends and/or distributions to shareholders (1.57) (1.76) (1.77) (1.30) (.43) (1.05) - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 14.23 $ 14.06 $ 13.69 $ 16.17 $ 14.09 $ 13.07 ==================================================================================== ================================================================================================================================= Total Return, at Net Asset Value/2/ 13.31% 16.29% (4.71)% 25.46% 11.22% 22.79% ================================================================================================================================= Ratios/Supplemental Data - --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 639,648 $ 635,603 $ 624,895 $ 712,470 $ 264,359 $ 251,353 - --------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 644,356 $ 660,113 $ 699,665 $ 395,436 $ 256,765 $ 249,660 - --------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets:/3/ Net investment income 3.71% 3.70% 3.34% 3.30% 4.73% 3.97% Expenses 1.13% 1.09% 1.08%/4/ 1.16%/4/ 1.21%/4/ 1.15%/4/ - --------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 33% 15% 59% 51% 32% 29%
1. For the nine months ended September 30, 1996. The Fund changed its fiscal year end from December 31 to September 30. 2. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period (or inception of offering), with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. 3. Annualized for periods of less than one full year. 4. Expense ratio has not been grossed up to reflect the effect of expenses paid indirectly. See accompanying Notes to Financial Statements. 30 OPPENHEIMER MULTIPLE STRATEGIES FUND
Year Year Ended Ended Sept. 30, Dec. 31, Class B 2000 1999 1998 1997 1996/1/ 1995/2/ =================================================================================================================================== Per Share Operating Data - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 13.93 $ 13.57 $ 16.04 $ 14.01 $ 13.03 $ 13.28 - ----------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .41 .41 .38 .45 .41 .17 Net realized and unrealized gain (loss) 1.19 1.58 (1.20) 2.78 .93 .41 --------------------------------------------------------------------------------------- Total income (loss) from investment operations 1.60 1.99 (.82) 3.23 1.34 .58 - ----------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.36) (.41) (.37) (.41) (.36) (.27) Distributions from net realized gain (1.09) (1.22) (1.28) (.79) -- (.56) --------------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (1.45) (1.63) (1.65) (1.20) (.36) (.83) - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 14.08 $ 13.93 $ 13.57 $ 16.04 $ 14.01 $ 13.03 =================================================================================================================================== Total Return, at Net Asset Value/3/ 12.30% 15.35% (5.49)% 24.34% 10.37% 4.44% - ----------------------------------------------------------------------------------------------------------------------------------- =================================================================================================================================== Ratios/Supplemental Data - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 66,777 $ 68,875 $ 73,036 $ 67,916 $ 5,996 $ 1,265 - ----------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 66,956 $ 73,673 $ 74,442 $ 25,113 $ 3,546 $ 520 - ----------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets:/4/ Net investment income 2.92% 2.85% 2.53% 2.26% 3.69% 2.62% Expenses 1.94% 1.93% 1.91%/5/ 1.96%/5/ 2.12%/5/ 2.27%/5/ - ----------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 33% 15% 59% 51% 32% 29%
1. For the nine months ended September 30, 1996. The Fund changed its fiscal year end from December 31 to September 30. 2. For the period from August 29, 1995 (inception of offering) to December 31, 1995. 3. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period (or inception of offering), with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. 4. Annualized for periods of less than one full year. 5. Expense ratio has not been grossed up to reflect the effect of expenses paid indirectly. See accompanying Notes to Financial Statements. 31 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
Year Year Ended Ended Sept. 30, Dec. 31, Class C 2000 1999 1998 1997 1996/1/ 1995 ================================================================================================================================= Per Share Operating Data Net asset value, beginning of period $ 13.97 $ 13.61 $ 16.07 $ 14.02 $ 13.01 $ 11.49 - --------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .41 .42 .38 .41 .40 .40 Net realized and unrealized gain (loss) 1.20 1.57 (1.20) 2.83 .96 2.07 --------------------------------------------------------------------------------------- Total income (loss) from investment operations 1.61 1.99 (.82) 3.24 1.36 2.47 - --------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.36) (.41) (.36) (.40) (.35) (.39) Distributions from net realized gain (1.09) (1.22) (1.28) (.79) -- (.56) --------------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (1.45) (1.63) (1.64) (1.19) (.35) (.95) - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 14.13 $ 13.97 $ 13.61 $ 16.07 $ 14.02 $ 13.01 ======================================================================================= ================================================================================================================================= Total Return, at Net Asset Value/2/ 12.35% 15.28% (5.43)% 24.42% 10.55% 21.69% - --------------------------------------------------------------------------------------------------------------------------------- ================================================================================================================================= Ratios/Supplemental Data - --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 38,522 $ 38,978 $ 48,417 $ 49,539 $ 21,087 $ 15,405 - --------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 38,597 $ 43,701 $ 52,325 $ 33,813 $ 17,898 $ 11,827 - --------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets:/3/ Net investment income 2.92% 2.85% 2.51% 2.61% 3.84% 3.08% Expenses 1.94% 1.93% 1.91%/4/ 1.97%/4/ 2.07%/4/ 1.99%/4/ - --------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 33% 15% 59% 51% 32% 29%
1. For the nine months ended September 30, 1996. The Fund changed its fiscal year end from December 31 to September 30. 2. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period (or inception of offering), with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. 3. Annualized for periods of less than one full year. 4. Expense ratio has not been grossed up to reflect the effect of expenses paid indirectly. See accompanying Notes to Financial Statements. 32 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 1.Significant Accounting Policies Oppenheimer Multiple Strategies Fund (the Fund) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund's investment objective is to seek high total investment return consistent with preservation of principal. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers Class A, Class B and Class C shares. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B and Class C shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). All classes of shares have identical rights to earnings, assets and voting privileges, except that each class has its own expenses directly attributable to that class and exclusive voting rights with respect to matters affecting that class. Classes A, B and C have separate distribution and/or service plans. Class B shares will automatically convert to Class A shares six years after the date of purchase. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- Securities Valuation. Securities listed or traded on National Stock Exchanges or other domestic or foreign exchanges are valued based on the last sale price of the security traded on that exchange prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing bid and asked prices, and if not, at the closing bid price. Securities (including restricted securities) for which quotations are not readily available are valued primarily using dealer-supplied valuations, a portfolio pricing service authorized by the Board of Trustees, or at their fair value. Fair value is determined in good faith under consistently applied procedures under the supervision of the Board of Trustees. Short-term "money market type" debt securities with remaining maturities of sixty days or less are valued at amortized cost (which approximates market value). - -------------------------------------------------------------------------------- Structured Notes. The Fund invests in foreign currency-linked structured notes whose market value and redemption price are linked to foreign currency exchange rates. The structured notes are leveraged, which increases the notes' volatility relative to the principal of the security. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying financial statements. As of September 30, 2000, these securities resulted in unrealized gains of $33,563. The Fund may also hedge a portion of the foreign currency exposure generated by these securities, as discussed in Note 5. - -------------------------------------------------------------------------------- Security Credit Risk. The Fund invests in high yield securities, which may be subject to a greater degree of credit risk, greater market fluctuations and risk of loss of income and principal, and may be more sensitive to economic conditions than lower yielding, higher rated fixed income securities. The Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default. As of September 30, 2000, securities with an aggregate market value of $38,025, representing 0.01% of the Fund's net assets, were in default. 33 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Continued Foreign Currency Translation. The accounting records of the Fund are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- Repurchase Agreements. The Fund requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as collateral for repurchase agreements. The market value of the underlying securities is required to be at least 102% of the resale price at the time of purchase. If the seller of the agreement defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the Fund may be delayed or limited. - -------------------------------------------------------------------------------- Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- Federal Taxes. The Fund intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income, including any net realized gain on investments not offset by loss carryovers, to shareholders. Therefore, no federal income or excise tax provision is required. - -------------------------------------------------------------------------------- Trustees' Compensation. The Fund has adopted an unfunded retirement plan for the Fund's independent Board of Trustees. Benefits are based on years of service and fees paid to each trustee during the years of service. During the year ended September 30, 2000, a provision of $57,662 was made for the Fund's projected benefit obligations and payments of $13,035 were made to retired trustees, resulting in an accumulated liability of $236,807 as of September 30, 2000. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of annual compensation they are entitled to receive from the Fund. Under the plan, the compensation deferred is periodically adjusted as though an equivalent amount had been invested for the Board of Trustees in shares of one or more Oppenheimer funds selected by the 34 OPPENHEIMER MULTIPLE STRATEGIES FUND trustee. The amount paid to the Board of Trustees under the plan will be determined based upon the performance of the selected funds. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. - -------------------------------------------------------------------------------- Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. - -------------------------------------------------------------------------------- Classification of Dividends and Distributions to Shareholders. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gain was recorded by the Fund. The Fund adjusts the classification of distributions to shareholders to reflect the differences between financial statement amounts and distributions determined in accordance with income tax regulations. Accordingly, during the year ended September 30, 2000, amounts have been reclassified to reflect an increase in paid-in capital of $3,131,265, a decrease in undistributed net investment income of $163,427, and a decrease in accumulated net realized gain on investments of $2,967,838. This reclassification includes $3,136,404 distributed in connection with Fund share redemptions which increased paid-in capital and reduced accumulated net realized gain. Net assets of the Fund were unaffected by the reclassifications. - -------------------------------------------------------------------------------- Expense Offset Arrangements. Expenses paid indirectly represent a reduction of custodian fees for earnings on cash balances maintained by the Fund. - -------------------------------------------------------------------------------- Other. Investment transactions are accounted for as of trade date and dividend income is recorded on the ex-dividend date. Discount on securities purchased is accreted over the life of the respective securities, in accordance with federal income tax requirements. Realized gains and losses on investments and options written and unrealized appreciation and depreciation are determined on an identified cost basis, which is the same basis used for federal income tax purposes. Dividends-in-kind are recognized as income on the ex-dividend date, at the current market value of the underlying security. Interest on payment-in-kind debt instruments is accrued as income at the coupon rate and a market adjustment is made periodically. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 35 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- ================================================================================ 2.Shares of Beneficial Interest The Fund has authorized an unlimited number of no par value shares of beneficial interest for each class. Transactions in shares of beneficial interest were as follows:
Year Ended September 30, 2000 Year Ended September 30, 1999 Shares Amount Shares Amount - ------------------------------------------------------------------------------------------------------------- Class A Sold 2,399,891 $ 33,730,252 1,797,693 $ 25,595,843 Dividends and/or distributions reinvested 4,751,781 63,935,355 5,300,198 72,227,515 Redeemed (7,377,559) (103,090,489) (7,538,361) (107,027,712) ------------------------------------------------------------------------------ Net decrease (225,887) $ (5,424,882) (440,470) $ (9,204,354) ============================================================================== - ------------------------------------------------------------------------------------------------------------- Class B Sold 887,243 $ 12,369,666 1,006,931 $ 14,207,626 Dividends and/or distributions reinvested 473,833 6,297,177 577,898 7,782,999 Redeemed (1,563,882) (21,690,687) (2,021,277) (28,376,514) ------------------------------------------------------------------------------ Net decrease (202,806) $ (3,023,844) (436,448) $ (6,385,889) ============================================================================== - ------------------------------------------------------------------------------------------------------------- Class C Sold 428,935 $ 5,997,482 411,845 $ 5,825,212 Dividends and/or distributions reinvested 272,821 3,635,733 337,524 4,555,422 Redeemed (765,156) (10,589,938) (1,518,503) (21,507,261) ------------------------------------------------------------------------------ Net decrease (63,400) $ (956,723) (769,134) $ (11,126,627) ==============================================================================
================================================================================ 3.Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the year ended September 30, 2000, were $229,639,832 and $274,081,210, respectively. As of September 30, 2000, unrealized appreciation (depreciation) based on cost of securities for federal income tax purposes of $609,101,733 was: Gross unrealized appreciation $ 167,948,683 Gross unrealized depreciation (35,471,931) Net unrealized appreciation $ 132,476,752 ================================================================================ 4.Fees and Other Transactions with Affiliates Management Fees. Management fees paid to the Manager are in accordance with the investment advisory agreement with the Fund which provides for a fee of 0.75% on the first $200 million of average annual net assets of the Fund, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the next $200 million, 0.60% of the next $700 million and 0.58% of average annual net assets in excess of $1.5 billion. The Fund's management fee for the year ended September 30, 2000, was an annualized rate of 0.71%, before any waiver by the Manager if applicable. 36 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund on an "at-cost" basis. OFS also acts as the transfer and shareholder servicing agent for the other Oppenheimer funds. - -------------------------------------------------------------------------------- Distribution and Service Plan Fees. Under its General Distributor's Agreement with the Manager, the Distributor acts as the Fund's principal underwriter in the continuous public offering of the different classes of shares of the Fund. The compensation paid to (or retained by) the Distributor from the sale of shares or on the redemption of shares is shown in the table below for the period indicated.
Aggregate Class A Commissions Commissions Commissions Front-End Front-End on Class A on Class B on Class C Sales Charges Sales Charges Shares Shares Shares on Class A Retained by Advanced by Advanced by Advanced by Year Ended Shares Distributor Distributor/1/ Distributor/1/ Distributor/1/ - ------------------------------------------------------------------------------------------------------------------ September 30, 2000 $392,339 $144,549 $14,825 $348,915 $48,291
1. The Distributor advances commission payments to dealers for certain sales of Class A shares and for sales of Class B and Class C shares from its own resources at the time of sale.
Class A Class B Class C Contingent Deferred Contingent Deferred Contingent Deferred Sales Charges Sales Charges Sales Charges Year Ended Retained by Distributor Retained by Distributor Retained by Distributor - ------------------------------------------------------------------------------------------------------------- September 30, 2000 $4,472 $151,138 $4,114
The Fund has adopted a Service Plan for Class A shares and Distribution and Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment Company Act. Under those plans the Fund pays the Distributor for all or a portion of its costs incurred in connection with the distribution and/or servicing of the shares of the particular class. - -------------------------------------------------------------------------------- Class A Service Plan Fees. Under the Class A service plan, the Distributor currently uses the fees it receives from the Fund to pay brokers, dealers and other financial institutions. The Class A service plan permits reimbursements to the Distributor at a rate of up to 0.25% of average annual net assets of Class A shares purchased. The Distributor makes payments to plan recipients quarterly at an annual rate not to exceed 0.25% of the average annual net assets consisting of Class A shares of the Fund. For the year ended September 30, 2000, payments under the Class A plan totaled $1,249,743 prior to Manager waiver if applicable, all of which were paid by the Distributor to recipients, and included $74,786 paid to an affiliate of the Manager. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent years. 37 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- ================================================================================ 4.Fees and Other Transactions with Affiliates Continued Class B and Class C Distribution and Service Plan Fees. Under each plan, service fees and distribution fees are computed on the average of the net asset value of shares in the respective class, determined as of the close of each regular business day during the period. The Class B and Class C plans provide for the Distributor to be compensated at a flat rate, whether the Distributor's distribution expenses are more or less than the amounts paid by the Fund under the plan during the period for which the fee is paid. The Distributor retains the asset-based sales charge on Class B shares. The Distributor retains the asset-based sales charge on Class C shares during the first year the shares are outstanding. The asset-based sales charges on Class B and Class C shares allow investors to buy shares without a front-end sales charge while allowing the Distributor to compensate dealers that sell those shares. The Distributor's actual expenses in selling Class B and Class C shares may be more than the payments it receives from the contingent deferred sales charges collected on redeemed shares and asset-based sales charges from the Fund under the plans. If any plan is terminated by the Fund, the Board of Trustees may allow the Fund to continue payments of the asset-based sales charge to the Distributor for distributing shares before the plan was terminated. The plans allow for the carryforward of distribution expenses, to be recovered from asset-based sales charges in subsequent fiscal periods. Distribution fees paid to the Distributor for the year ended September 30, 2000, were as follows:
Distributor's Distributor's Aggregate Unreimbursed Unreimbursed Expenses as % Total Payments Amount Retained Expenses of Net Assets Under Plan by Distributor Under Plan of Class - -------------------------------------------------------------------------------------------------------- Class B Plan $670,083 $528,605 $2,511,958 3.76% Class C Plan 386,245 52,369 667,881 1.73
================================================================================ 5.Foreign Currency Contracts A foreign currency contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. The Fund may enter into foreign currency contracts for operational purposes and to seek to protect against adverse exchange rate fluctuations. Risks to the Fund include the potential inability of the counterparty to meet the terms of the contract. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates as provided by a reliable bank, dealer or pricing service. Unrealized appreciation and depreciation on foreign currency contracts are reported in the Statement of Assets and Liabilities. 38 OPPENHEIMER MULTIPLE STRATEGIES FUND The Fund may realize a gain or loss upon the closing or settlement of the foreign currency transactions. Realized gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations. Securities denominated in foreign currency to cover net exposure on outstanding foreign currency contracts are noted in the Statement of Investments where applicable. ================================================================================ 6.Option Activity The Fund may buy and sell put and call options, or write put and covered call options on portfolio securities in order to produce incremental earnings or protect against changes in the value of portfolio securities. The Fund generally purchases put options or writes covered call options to hedge against adverse movements in the value of portfolio holdings. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon the expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid. Securities designated to cover outstanding call options are noted in the Statement of Investments where applicable. Shares subject to call, expiration date, exercise price, premium received and market value are detailed in a note to the Statement of Investments. Options written are reported as a liability in the Statement of Assets and Liabilities. Realized gains and losses are reported in the Statement of Operations. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. Written option activity for the year ended September 30, 2000, was as follows:
Call Options ----------------------------------- Number of Amount of Contracts Premiums - ---------------------------------------------------------------------------------------------- Options outstanding as of September 30, 1999 5,141 $ 2,350,634 Options written 14,207 5,821,804 Options closed or expired (9,169) (4,311,284) Options exercised (1,890) (846,930) ----------------------------------- Options outstanding as of September 30, 2000 8,289 $ 3,014,224 ===================================
39 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- ================================================================================ 7.Illiquid Securities As of September 30, 2000, investments in securities included issues that are illiquid. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund intends to invest no more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. The aggregate value of illiquid securities subject to this limitation as of September 30, 2000, was $17,829,099, which represents 2.39% of the Fund's net assets. Certain restricted securities, eligible for resale to qualified institutional investors, are not subject to that limit. ================================================================================ 8.Bank Borrowings The Fund may borrow from a bank for temporary or emergency purposes including, without limitation, funding of shareholder redemptions provided asset coverage for borrowings exceeds 300%. The Fund has entered into an agreement which enables it to participate with other Oppenheimer funds in an unsecured line of credit with a bank, which permits borrowings up to $400 million, collectively. Interest is charged to each fund, based on its borrowings, at a rate equal to the Federal Funds Rate plus 0.45%. Borrowings are payable 30 days after such loan is executed. The Fund also pays a commitment fee equal to its pro rata share of the average unutilized amount of the credit facility at a rate of 0.08% per annum. The Fund had no borrowings outstanding during the year ended September 30, 2000. 40 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- INDEPENDENT AUDITORS' REPORT - -------------------------------------------------------------------------------- ================================================================================ The Board of Trustees and Shareholders of Oppenheimer Multiple Strategies Fund: We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Oppenheimer Multiple Strategies Fund as of September 30, 2000, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended and the financial highlights for each of the years in the four-year period then ended, the nine-month period ended September 30, 1996, and the year ended December 31, 1995. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2000, by correspondence with the custodian and brokers; and where confirmations were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Multiple Strategies Fund as of September 30, 2000, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the four-year period then ended, the nine-month period ended September 30, 1996, and the year ended December 31, 1995, in conformity with accounting principles generally accepted in the United States of America. KPMG LLP Denver, Colorado October 20, 2000 41 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- FEDERAL INCOME TAX INFORMATION Unaudited - -------------------------------------------------------------------------------- ================================================================================ In early 2001 shareholders will receive information regarding all dividends and distributions paid to them by the Fund during calendar year 2000. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. Dividends and distributions of $1.2082, $1.1724 and $1.1727 per share were paid to Class A, Class B and Class C shareholders, respectively, on December 9, 1999, of which $0.9937 was designated as a "capital gain distribution" for federal income tax purposes. Whether received in stock or in cash, the capital gain distribution should be treated by shareholders as a gain from the sale of capital assets held for more than one year (long-term capital gains). Dividends paid by the Fund during the fiscal year ended September 30, 2000, which are not designated as capital gain distributions should be multiplied by 19.53% to arrive at the net amount eligible for the corporate dividend-received deduction. The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance. 42 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- Officers and Trustees Leon Levy, Chairman of the Board of Trustees Donald W. Spiro, Vice Chairman of the Board of Trustees Bridget A. Macaskill, Trustee and President Robert G. Galli, Trustee Phillip A. Griffiths, Trustee Benjamin Lipstein, Trustee Elizabeth B. Moynihan, Trustee Kenneth A. Randall, Trustee Edward V. Regan, Trustee Russell S. Reynolds, Jr., Trustee Clayton K. Yeutter, Trustee George Evans, Vice President Michael S. Levine, Vice President David P. Negri, Vice President Richard H. Rubinstein, Vice President Andrew J. Donohue, Secretary Brian W. Wixted, Treasurer Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary ================================================================================ Investment Advisor OppenheimerFunds, Inc. ================================================================================ Distributor OppenheimerFunds Distributor, Inc. ================================================================================ Transfer and Shareholder OppenheimerFunds Services Servicing Agent ================================================================================ Custodian of The Bank of New York Portfolio Securities ================================================================================ Independent Auditors KPMG LLP ================================================================================ Legal Counsel Mayer, Brown & Platt For more complete information about Oppenheimer Multiple Strategies Fund, please refer to the Prospectus. To obtain a copy, call your financial advisor, or call OppenheimerFunds Distributor, Inc. at 1.800.525.7048, or visit the OppenheimerFunds Internet website at www.oppenheimerfunds.com. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, and are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade Center, New York, NY 10048-0203. (C) Copyright 2000 OppenheimerFunds, Inc. All rights reserved. 43 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- OPPENHEIMERFUNDS FAMILY - --------------------------------------------------------------------------------
============================================================================================================ Global Equity - ------------------------------------------------------------------------------------------------------------ Developing Markets Fund Global Fund International Small Company Fund Quest Global Value Fund Europe Fund Global Growth & Income Fund International Growth Fund ============================================================================================================ Equity - ------------------------------------------------------------------------------------------------------------ Stock Stock & Bond Emerging Technologies Fund Main Street(R) Growth & Income Fund Enterprise Fund Quest Opportunity Value Fund Discovery Fund Total Return Fund Main Street(R) Small Cap Fund Quest Balanced Value Fund Quest Small Cap Fund/1/ Capital Income Fund MidCap Fund Multiple Strategies Fund Main Street(R) Opportunity Fund Disciplined Allocation Fund Growth Fund Convertible Securities Fund Capital Appreciation Fund Large Cap Growth Fund Specialty Disciplined Value Fund Real Asset Fund(R) Quest Capital Value Fund Gold & Special Minerals Fund Quest Value Fund Trinity Growth Fund Trinity Core Fund Trinity Value Fund ============================================================================================================ Fixed Income - ------------------------------------------------------------------------------------------------------------ Taxable Municipal International Bond Fund California Municipal Fund/3/ World Bond Fund/2/ Main Street(R)California Municipal Fund/2/,/3/ High Yield Fund Florida Municipal Fund/3/ Champion Income Fund New Jersey Municipal Fund/3/ Strategic Income Fund New York Municipal Fund/3/ Bond Fund Pennsylvania Municipal Fund/3/ Senior Floating Rate Fund Municipal Bond Fund U.S. Government Trust Insured Municipal Fund/2/ Limited-Term Government Fund Intermediate Municipal Fund Rochester Division Rochester Fund Municipals Limited Term New York Municipal Fund ============================================================================================================ Money Market/4/ - ------------------------------------------------------------------------------------------------------------ Money Market Fund Cash Reserves
1. The Fund's name changed from "Oppenheimer Quest Small Cap Value Fund" on 5/19/00. 2. The Fund's Board has proposed to reorganize the Fund into another Oppenheimer fund subject to shareholder approval. 3. Available to investors only in certain states. 4. An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although these funds may seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds. 44 OPPENHEIMER MULTIPLE STRATEGIES FUND - -------------------------------------------------------------------------------- INFORMATION AND SERVICES - -------------------------------------------------------------------------------- As an Oppenheimer fund shareholder, you can benefit from special services designed to make investing simple. Whether it's automatic investment plans, timely market updates, or immediate account access, you can count on us whenever you need assistance. So call us today, or visit our website--we're here to help. Internet 24-hr access to account information and transactions/1/ www.oppenheimerfunds.com ----------------------------------------------------------- General Information Mon-Fri 8am-9pm ET, Sat 10am-4pm ET 1.800.525.7048 ----------------------------------------------------------- Telephone Transactions Mon-Fri 8am-9pm ET, Sat 10am-4pm ET 1.800.852.8457 ----------------------------------------------------------- PhoneLink 24-hr automated information and automated transactions 1.800.533.3310 ----------------------------------------------------------- Telecommunications Device for the Deaf (TDD) Mon-Fri 9am-6:30pm ET 1.800.843.4461 ----------------------------------------------------------- OppenheimerFunds Market Hotline 24 hours a day, timely and insightful messages on the economy and issues that may affect your investments 1.800.835.3104 ----------------------------------------------------------- Transfer and Shareholder Servicing Agent OppenheimerFunds Services P.O. Box 5270, Denver, CO 80217-5270 ----------------------------------------------------------- Ticker Symbols Class A: OPASX Class B: OASBX Class C: OASCX 1. At times this website may be inaccessible or its transaction feature may be unavailable. [GRAPHIC] OppenheimerFunds(R) Distributor, Inc. RA0240.001.0900 November 29, 2000 -----END PRIVACY-ENHANCED MESSAGE-----